• Singapore’s loans growth stable at 2.1% YoY. Consumer loans (-0.6% YoY) contracted for the third consecutive month, dragged by persistent weakness in housing loans.
• Domestic deposits rose 8.8% YoY, held up by sustained the strength in fixed deposits that expanded 21.8% YoY.
• Meanwhile, CASA stopped contracting for the first time in 9 months with a 1.2% YoY growth in June.
• 3M SIBOR stable at 1.998%, while 3M SOR dipped 7 bps to 1.758%.
• Maintain the Singapore Banking Sector at Overweight. While the trade war affects investor sentiments in the near term, we believe the banks’ fundamentals remain intact to withstand risks and deliver growth.

• FTSE S-REIT Index gained +0.4% MTD and +21.7% YTD. Strongest gains were from the healthcare sub-sector (+3.9%) and weakest showing at the hospitality sub-sector (-2.3%).
• Performance in August: Best performer – Keppel-KBS US REIT (+5.7%), Worst performer – Eagle Hospitality Trust (-10.3%).
• Sector yield spread of 288bps over the benchmark 10-year SGS (10YSGS) yield was at the -1.3 standard deviation (SD) level.
• 3m SOR was flat at 1.75% at 16 August 2019 versus 1.76% at end-July.
• Remain NEUTRAL on S-REITs sector. Sub-sector preferences: Office and Hospitality.

ARA Asset Management Limited (ARA) is a global integrated real assets fund manager. As at 30 June 2019, Gross Assets Managed by ARA Group and its Associates is more than S$83bn across over 100 cities in 23 countries.

(+) Stable income operating model

(+) Established stakeholders

(-) Depressed interest coverage ratio when including perpetual bond payments

(-) Private company, possible re-listing