REITs Defensive amidst turbulent times

Since 2H07, credit concerns and a US-led slowdown have cast a pall over the
market, both globally and domestically. To tide over this period, we
suggest investors take a look at the S-REIT counters, given their earnings
visibility, attractive yields and prospect of positive rental reversions.
With the 10-year SGS bond currently offering an all-time low of 2.08% and
S-REITs trading at a decent average yield of 6.4%, we believe that
investors should begin to place emphasis on the sector. Our key
recommendations are Suntec REIT, Frasers Centrepoint Trust and Cambridge
Industrial Trust.