Here's how Singapore REITs will fare in 2014-2015

Barclays gives its two-year outlook.

Barclays said that there will be a potential cyclical recovery in Office, resilient dividends in Industrial, expansive valuations for the retail majors and expected deterioration of Singapore residential fundamentals in 2014-15.

For investors, Barclays recommended its top picks of Keppel REIT, CapitaCommercial Trust, Ascendas REIT and Mapletree Industrial Trust. While it advised investors to lower their exposure to residential developers, specifically City Developments and Keppel Land.

Barclays also revealed the specific trends per sector for which investors should keep an eye out.

"For the SREITs, we will watch for guidance on leasing progress in new and AEI projects, and trends in tenant demand. Major acquisitions in the current weak capital markets are likely on the backburner for now. Gearing levels for the REITs trend between 29-44% debt/ assets, while those for the developers are 22-45% net debt/equity. For the developers, we will watch for leasing/sales progress, change in management tone and strategic plans," it added.

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