PETALING JAYA: Real Estate Investment Trusts (REITs) continue to attract investors looking for a defensive yield play on the back of easing government bond yields, stable occupancy rates and normalising rental reversion.
RHB Research, however, believed the upside to their earnings may be limited due to increased competition in the retail sector and moderate growth in spending due to the higher cost of living.
“We are selective on REITs that provide more sustainable and higher yields with a stable earnings outlook,” the research house said, adding that it has maintained its “neutral” stance on the sector, with IGB-REIT as its top pick.
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