REITs 2Q earnings likely to remain strong

UOBKH Research maintains its “overweight’’ stand on the sector. Its top picks are Sunway-REIT (border reopening recovery), Sentral-REIT (high and resilient yields of 7% to 8%), and IGB-REIT (resilient and stable earnings).

PETALING JAYA: The real estate investment trust (REIT) sector’s second quarter earnings are expected to remain strong, but the trend may not be robust enough to carry into the third quarter of this year because of inflationary concerns.However, REITs still command attractive yields of at least 5%, compared with fixed income instruments.

The better earnings in the second quarter of 2022 (2Q22) is led by the festive season and the Employees Provident Fund (EPF) special withdrawal scheme.