- We value Phillip SGX APAC Dividend Leaders REIT ETF (PAREITS) using a combination of historical dividend yield spread and price-to-book ratios. Using these two valuation methods, the prices are S$1.23 and S$1.05, respectively. Applying equal weightage to both valuations, we lower our target price to S$1.14 (previously S$1.29). We maintain our ACCUMULATE recommendation.
- The top 3 holdings remain the same, with Link REIT moving up from second to first place. PAREITS remains well-diversified across five different sectors. Its largest sector is retail (39.0%).
- PAREITS has the highest dividend yields among all Singapore REIT ETFs, primarily driven by its dividend-weighted construction and APAC exposure. Going forward, we believe the outlook is supported by potential rate cuts through 2026, which should lower financing costs and further support DPU growth.
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