This was the presentation slides presented during REITs Symposium held at Suntec on 19 May 2018.

• Interest rate hikes a headwind, but rate hikes with accompanying economic growth is not a worry.
• S-REITs returned a CAGR of 26.5% during last rate hike cycle from 2004-06.
• Domestic economy gaining momentum, 4.3% in 1Q18 outpacing previous quarter. Though not expected to reach levels seen during last rate hike cycle, still a possible catalyst for further yield spread compression.
• Do not believe will see dramatic rise in inflation with velocity of money still at multi-year lows.
• SG interest rates climbing across all tenures – up 35-50bps since start 2018.
• Markets already pricing in interest rate hikes.
• Relative strength of SGD will be plus for sector – SGD rates could rise slower than US rates.
• Long-term performance of S-REIT asset classes comparable with residential prices.
• Positive on Office and Hospitality subsectors.