Overnight Sora is quite volatile, and most loans are priced off 3-month compounded Sora whose downtrend is quite pronounced. The 3-month compounded Sora index was at 1.531% on Sept 4, down from 3.0346% on Jan 2.
Office REITs (+9.8%) were the best-performing S-REIT sector while Industrial REITs (+1.3%) lagged.
“Heading into 4Q2025 we turn more positive on the Singapore Property & REIT sector owing to greater interest rate tailwinds. While we continue to like Singapore exposures, which are key beneficiaries of the sizeable drop in Sora we recommend increasing exposure to laggards, with our preferred picks being City Developments for its upcoming value unlock, Mapletree Pan Asia Commercial Trust on stabilisation after three years of downturn and Suntec REIT for its earnings recovery," JP Morgan says.
"Our other top picks include CapitaLand Integrated Commercial Trust, CapitaLand Ascendas REIT, Frasers Centrepoint Trust and Keppel DC REIT. We would avoid CDL Hospitality Trusts, and Mapletree Industrial Trust as we expect further earnings disappointment,” they add.
