Institution: The Federal Reserve interest rate path may dominate the unit price of Singapore REITs.

Overseas Chinese Bank's Investment Research Department stated in a report that the interest rate trajectory of the Federal Reserve may dominate the unit price performance of Singapore-listed Real Estate Investment Trusts (REITs). The research team expects that the Federal Reserve's rate cuts in 2026 will be "more measured" compared to market expectations. They mentioned that the expected interest rate trajectory of Overseas Chinese Bank may dampen the price performance of REITs. However, in a more favorable interest rate environment, next year's dividend per unit growth of REITs may reach a turning point. But these analysts added that the favorable factors brought by interest cost savings may not be evenly distributed among different REITs, depending on their hedging and debt maturity situations. Retail remains a sub-sector favored by Overseas Chinese Bank, followed by logistics and industrial REITs focusing on data centers. Preferred stocks include Keppel DC REIT and Mapletree Logistics Trust.