Amid heightened market volatility stemming from the global fallout
from
the US sub-prime mortgage crisis and looming recesionary fears,
we
advocate investors to switch from the developers to Reits, which
offer
both property exposure and yield security. In view of the
current
difficulty in equity fund raising, we favour Reits with room for
upward
rent reversions, good quality asset portfolio, prudent
capital
management, low gearing and trading below NAV. In particular, we
like
Cambridge Industrial Trust (industrial segment), Ascott Residence
Trust
(hospitality) and Suntec Reit (office/retail).
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