Key Indices
Top Stories
Sector Update | REITs
- The risk-free rate for our DDM is now based on each country’s 10-year government bond yield weighted by the REIT’s geographical disposition. Target prices for CICT, FCT, LREIT are relatively unchanged due to their outsized exposure to the home base in Singapore at 93%, 100% and 91% respectively. CLAS’ target price is significantly reduced by 27.5% due to its exposure to Australia, UK and the US, while FLT’s target price is cut by 27.8% due to exposure to Australia and the UK. Maintain OVERWEIGHT.
Company Update | Centurion Accommodation REIT (CAREIT SP/BUY/S$1.13/Target: S$1.39)
- Westlite Toh Guan and Westlite Mandai added 1,764 and 3,696 beds respectively, after construction was completed in Oct 25 and Jan 26. In total, the two new blocks expanded PBWA bed capacity by 25.7%. CAREIT has commenced construction of a new block with 540 beds at Westlite Ubi after obtaining provisional planning permission in Feb 26. Regulatory capacity loss has resulted in a shortage of PBWA beds. CAREIT provides DPU yield of 7.3% in 2027. Maintain BUY. Target price: S$1.39.
Market Spotlight
- US stocks were lower on Wednesday, with all three major indexes declining as the industrials, consumer discretionary and utilities sectors fell. There were more decliners than advancers on both the NYSE and the
Nasdaq.
- The FSSTI fell 37.82pt to 5,729.63, on the back of weakness in DBS, SATS and OCBC Bank, with mid-cap indices falling while small-cap indices rose with a broad market decline on S$1.87b turnover.
Technical Analysis
Hongkong Land (HKL SP)
- Trading Buy Range: US$8.51-8.52
Food Empire (FEH SP)
- Trading Sell Range: S$2.20-2.21
Top Stories
Sector Update | REITs
- The risk-free rate for our DDM is now based on each country’s 10-year government bond yield weighted by the REIT’s geographical disposition. Target prices for CICT, FCT, LREIT are relatively unchanged due to their outsized exposure to the home base in Singapore at 93%, 100% and 91% respectively. CLAS’ target price is significantly reduced by 27.5% due to its exposure to Australia, UK and the US, while FLT’s target price is cut by 27.8% due to exposure to Australia and the UK. Maintain OVERWEIGHT.
Company Update | Centurion Accommodation REIT (CAREIT SP/BUY/S$1.13/Target: S$1.39)
- Westlite Toh Guan and Westlite Mandai added 1,764 and 3,696 beds respectively, after construction was completed in Oct 25 and Jan 26. In total, the two new blocks expanded PBWA bed capacity by 25.7%. CAREIT has commenced construction of a new block with 540 beds at Westlite Ubi after obtaining provisional planning permission in Feb 26. Regulatory capacity loss has resulted in a shortage of PBWA beds. CAREIT provides DPU yield of 7.3% in 2027. Maintain BUY. Target price: S$1.39.
Market Spotlight
- US stocks were lower on Wednesday, with all three major indexes declining as the industrials, consumer discretionary and utilities sectors fell. There were more decliners than advancers on both the NYSE and the
Nasdaq.
- The FSSTI fell 37.82pt to 5,729.63, on the back of weakness in DBS, SATS and OCBC Bank, with mid-cap indices falling while small-cap indices rose with a broad market decline on S$1.87b turnover.
Technical Analysis
Hongkong Land (HKL SP)
- Trading Buy Range: US$8.51-8.52
Food Empire (FEH SP)
- Trading Sell Range: S$2.20-2.21
Key Indices
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