Often overlooked by investors in favour of blue-chip S-REITs, “laggard” S-REITs are expected to play catch-up to their blue-chip peers in 2021 as these trade at higher distribution yields and larger discounts to NAV. In a report, UOB Kay Hian analyst Jonathan Koh noted that whilst these laggard S-REITS have smaller market capitalisation, lower trading liquidity, and are usually not a component stock of major indices, the quality of their real estate portfolios could be comparable to blue-chip S-REITs. Koh has named five S-REITs with more attractive valuations that could represent opportunities for long-term investors: Ara Logos Logistics Trust, Far East Hospitality Trust, Lendlease Global Commercial REIT, Suntec REIT, and United Hampshire US REIT. Lendlease Global Commercial REIT (LREIT) is positioned to benefit from the recovery in visitor arrivals in 2022 thanks to its key property 313@Sommerset, as tourists account for 18% of shopper traffic at 313@Somerset. Meanwhile, Far East Hospitality Trust’s (FEHT) master lease structure was noted for mitigating the negative impact from the COVID-19 pandemic. Under this structure, fixed rents accounted for 72% of FEHT’s 2019 gross revenue from hotels and serviced residences.... Continue Reading