Trending Sector

Singapore Real Estate

Boots on the ground

• Boots-on-the-ground checks reaffirm resilient real estate fundamentals, although macro concerns and the Fed continue to dominate investor sentiment
• Recent site visits and management meetings indicate healthy leasing momentum and resilient operating metrics across the office, retail and industrial sectors
• Property disruptors continue to gain traction, with Coliwoo and JustCo reporting strong takeup for their co-living and flexible workspace offerings, supported by structural demand trends
• On the ground, industrial assets continue to enjoy healthy leasing demand, while prime retail malls such as VivoCity, ION Orchard and Paragon maintain resilient shopper traffic and tenant activity

Regional REITs

Fundamentals firm despite transient flows

• Regional REITs showed resilience despite a more hawkish market backdrop, with negatives already priced in
• Impact is differentiated across S-REITs, H-REITs and TH-REITs; investors across the region seek shelter in defensives amid uncertainty
• Regional REIT valuations remain attractive and should cushion near-term volatility in the interest rate trajectory; yields ranging 4.9% -7.6% to drive inflows back into the sector

Stocks to Watch

UOB Kay Hian

<Initiating Coverage> Trading momentum accelerates, wealth franchise builds

• Multiple engines of growth; evolving from a pure brokerage into a broader financial services group, offering wealth management services
• Strong revenue growth to continue; expect 29%/34% FY26F growth in commission and trading income
• A strong proxy to Singapore equities market, compelling value at c.13x FY26F P/E compared to peers
• Initiate with BUY, TP 4.80

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