• The S-REITs Index fell 1.9% in February 2026, reversing the 0.7% gain in January 2026. Stoneweg Europe Stapled Trust (SERT SP, BUY, TP €1.89) was the top performer for the month, rising 6.9% on strong FY25 results. Prime US REIT (Prime SP, BUY, TP US$0.32) was the worst performer, falling 12.9% after rising 14.2% the month before, as investors weighed a slower-than-expected recovery in portfolio occupancy. Among the sub-sectors, Singapore retail led gains, rising 0.8%, while overseas commercial was the weakest, declining 8%, dragged by the US office S-REITs.
• Despite inflation concerns from heightened geopolitical tensions in the Middle East and expectations that the Fed will maintain higher-for-longer rates, we see potential for stronger DPU growth in FY26 from interest cost savings as benchmark SORA rates continue to decline. Valuations remain undemanding, with the sector trading at a forward dividend yield spread of c.3.8% (mean) and a P/NAV of 0.97x (-0.4 s.d.). UI Boustead REIT (UIBREIT SP, non-rated) began trading on SGX on 12 March at an IPO price of S$0.88, debuting to a lukewarm reception.
• We reiterate our OVERWEIGHT recommendation on S-REITs, as their stable performance and defensive positioning reaffirm their safe-haven status for global investors amid market volatility and uncertainty from heightened geopolitical tensions. Within sub-sectors, we prefer retail, where rental reversions are expected to remain strong in the high single-digits in 2026. We also favour overseas S-REITs offering high yields of over 8% with resilient portfolios, such as 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). In addition, we like Prime US REIT (PRIME SP, BUY, TP US$0.32), for its cheap valuation (0.37 P/NAV) and improving portfolio occupancy.

Investment Summary Revenue Growth Amid Transformation While Profits Face Pressure According to the 2025 annual result forecast of Great Wall Motor, the Company reported total revenue of RMB222.79 billion in the full year (RMB, the same below), up 10.19% yoy, while net profit attributable to the parent company amounted to RMB9,912 million, down 21.71% yoy. Net profit attributable to the parent company excluding non-recurring items dropped by 36.5% yoy to RMB6.16 billion. The decline in profit was mainly due to...
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Company Profile Weichai is one of the automobile and equipment manufacturing groups with the strongest comprehensive strength in China's heavy truck industry. Based on the powertrain system including engine, axle and gearbox, the Company extends upstream components and downstream heavy trucks, and takes the lead in forklifts and intelligent warehousing. After years of development, the Company has built a synergetic development pattern of four major industrial segments including powertrain (engine, transmission, axle/hydraulics), vehicle and machinery, intelligent logistics and other segments....
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