• The S-REITs Index gained 3% in July, extending its 0.4% increase in June. Acrophyte Hospitality Trust (ARAUS SP, non-rated) was the best performer, rising 37.1% (-1.9% YTD), amid optimism about a potential transaction involving its stapled securities as part of its ongoing strategic review. IREIT Global (IREIT SP, non-rated) was the worst performer, declining 10.2% (-36.6% YTD) amid concerns about higher financing costs and vacancy risks. The Singapore diversified REIT sub-sector was the best performer, gaining 4.1%, while overseas commercial REITs were the weakest, declining 4.3%.
• 1H26 results were strong, with S-REITs under our coverage delivering c.6% average DPU growth YoY, excluding Prime US REIT’s 316% growth due to its higher 65% payout ratio versus 10% in 1H25. Growth was driven by (i) lower financing costs, which declined by c.20bps YoY on average, (ii) resilient operating performance supported by higher rents, and (iii) contributions from completed AEIs and accretive acquisitions.
• We maintain OVERWEIGHT on S-REITs, although we remain selective given the uncertain interest rate outlook. We favour REITs with robust balance sheets, defensive earnings profiles and a high proportion of fixed-rate debt, which should provide greater resilience against interest rate volatility. Within the sector, we continue to favour retail S-REITs, supported by healthy tenant sales, near-full occupancy and limited new supply, which should underpin mid- to high-single-digit rental reversions in FY26e. Our top picks are high-yielding REITs with resilient portfolios: Stoneweg Europe Stapled Trust (SERT SP, BUY, TP: €1.89), Elite UK REIT (ELITE SP, BUY, TP: £0.41), and United Hampshire US REIT (UHU SP, BUY, TP: US$0.69).

Overview BLOKS is a leader in China’s assembly character toys market. The company holds over 500 patents, possesses original IP capabilities, and has non-exclusive licenses for approximately 50 well-known IPs. Its product positioning is “high quality at a reasonable price.” Leveraging its product strength and supply chain advantages, BLOKS maintains cost competitiveness while continuously expanding its product categories. The company has established a multi-channel sales network, and since 2022, has primarily focused on offline channels centered on distributors. According to...
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Overview POP MART is primarily engaged in the design and development of trendy toys. It operates a comprehensive platform covering the entire industry chain of intellectual property (IP) for trendy toys, with businesses including IP incubation and operation, trendy toys and retail, theme park and experiences, and digital entertainment. The company’s products include blind boxes, figurines, ball-jointed dolls (BJD), MEGA, plush toys, and derivatives, among others. Its self-developed products primarily feature artist-owned IPs such as THE MONSTERS, MOLLY, SKULLPANDA, and...
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