Real Estate/Property - Singapore: June’26 S-REITs preview: Cruel summer

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Real Estate/Property - Singapore: June’26 S-REITs preview: Cruel summer

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Real Estate/Property - Singapore

June’26 S-REITs preview: Cruel summer

Industry Overview

Cruel summer 10 July 2026

SREITs will soon report Jun’26 results. We see a muted summer season, with a Equity

protracted conflict in the Middle East and rising global bond yields to pose headwinds to ASEAN | Singapore

DPU recovery. Heightened macro uncertainty means that FX translation losses and weak Real Estate/Property

offshore leasing/pricing demand (e.g China, Aus, UK) are likely to persist. Divestments of

Donald Chua >>

non-core assets is a driver, but execution should be difficult in this environment. We see Research Analyst

limited catalysts for the sector at this point despite undemanding valuation at below Merrill Lynch (Singapore) +65 6678 0415

mid-cycle P/NAV. We continue to prefer domestic-focused SREITs over offshore exposed donald.chua@bofa.com

- more resilient leasing demand, stability in S$ debt cost and better opportunities to

recycle assets. CICT, CLAR, KDC and NTTDCREIT are our preferred picks.

List of abbreviations in Exhibit 20

Rates no longer a tailwind

Global central banks have turned incrementally hawkish. Our BofA US team now expects

the Fed to reverse the 2025 insurance cuts and hike three times in 2H26 starting in Related research

Sept, taking the target range to 4.25-4.50% by year-end. For major SREIT debt Global Rates Viewpoint: Mid-Year: It’s a small

currencies in 2026, our global teams expect rate hikes in JP, stable in EUR rates and world after oil, 25 June 2026

higher-for-longer in Aus (with risk of one more hike in ’26). Swap rates are pointing

towards a 5-50bps YTD increase in marginal cost of debt, with SG rates looking most