PETALING JAYA: The recent run-up in the share price of real estate investment trusts (REITs) coupled with the hunt for tenants in specific segments of the market are prompting a re-evaluation of the universe of REITs on the radar of analysts.
Analysts at Kenanga Research and HLIB Research said they would be employing a stock-picking strategy given the lofty valuations of REITs under their scope.
Noting that it still continues to see opportunities in certain REITs, Kenanga Research said the potential value to be extracted has been moderately priced in by the market following its previous “outperform” calls on big-cap REITs such as KLCC REIT and Sunway REIT, where prices have risen 3% to 12% over the past three months.
