Singapore Property

Research evidence excerpt

Singapore Property

Macquarie Equity Research

26 May 2026

REITs

ASEANSingapore Property

Interest rates remain in focus

Rachel

Key Points Tan

• 1Q26 was a good start; impact from Middle East conflict remains

muted. SREITs are well hedged on utility rates.

• Interest rates remain the pivotal watchpoint. Recent interest rates Figure10YR / 1MASB- SORA10YR/ USvsfedFSTREIRate Index/ US

movements continue to weigh on the sector, but SORA likely to remain Yield (%) Index performance

near 1%. 6.0 (based = Dec18)130

5.0 120• Stay defensive. CICT, PREIT for Singapore/defensive play; CLAR, MLT,

MPACT, FLT for potential rebound should conflict end and/or rate risks 4.0 110

ease. 3.0 10090

2.0

1.0 70

0.0 60• 1Q26 was a good start and results were largely in line as the impact 18 19 19 19 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23 24 24 24 24 25 25 25 25 26

from the Middle East conflict is still muted; SREITs are well hedged on Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar

utility rates. This reporting season, SREIT results were largely in line with SORA 3M US 10YR MASB 10YR US Fed Rate SORA FSTREI Index

market expectations. Key focus areas were the interest rate outlook and Source: Bloomberg, Macquarie Research, May 2026

the impact from the Middle East conflict. Overall, 1Q26 was a good start

to the year, and second-order impacts from the Middle East conflict have Figure 2 - Recommendation / TP

yet to appear. SREITs' utility rates are largely hedged in 2026 and some changes (excerpt)

have locked in rates through 2031. Previous New

• Interest rates remain the pivotal watchpoint. A potential Iran deal CICT OutperformRating TP2.70 Rating TP

sooner than later will bode well for the sector.