Singapore Property and REITs HK marketing feedback

Research evidence excerpt

Singapore Property and REITs HK marketing feedback

J P M O R G A N Asia Pacific Equity Research

20 May 2026

Singapore Property and REITs

HK marketing feedback

Key highlights from our recent Hong Kong marketing meetings include (1) Singapore/ASEAN Property and

discussions on the earlier jump in the overnight SORA and the impact of a steeper REITs

yield curve; (2) DPU accretion and acquisitions; and (3) queries on S-REITs, Mervin Song, CFA AC

developer and asset manager catalysts. Given the current market volatility, we (65) 6882-7829

continue to advocate resilient Singapore exposures with our top picks being CIT, mervin.song@jpmorgan.com

UOL and CICT. We also see value in fallen angels such as FLT, MLT and MPACT. Terence M Khi AC

(65) 6882-1518

• Interest volatility. The early-May jump in the overnight SORA to 1.46%, terence.ml.khi@jpmorgan.com

which has since eased to 1.1–1.2%, dominated discussions, with investors J.P.J.P. MorganMorgan SecuritiesSecurities Singapore(Asia Pacific)PrivateLimited/Limited/J.P.

questioning whether the SORA will remain low. Our FX strategist notes that Morgan Broking (Hong Kong) Limited

the spike may be temporary, driven by seasonal dividend and tax payments. A

15–20bp MoM steepening in the Singapore yield curve (2Y to 10Y) also raised

valuation concerns. We think the current S-REIT yield spread of 362bps, in line

with the 369bps long-term mean and above the 328bps average since 2019,

provides a valuation buffer. Beyond interest rate volatility, investors sought

views on the recent S-REIT softness. We attribute this to cuts in Bloomberg

consensus estimates for a number of S-REITs (Table 4Changestoconsensusestimatessince1Q26reportingseason). Overall, Singapore-

focused S-REITs should continue to experience an uptick in DPU as they