Standard Chartered: Thailand REITs can still provide attractive returns.

Analysts at DBS Group Research department stated in a report that despite facing short-term pressure from rising oil prices and fluctuating bond yields, Thai real estate investment trusts (REITs) can still provide attractive returns. They noted that the sector's average yield of around 8.3% implies a significant yield gap of about 6.1% compared to the approximately 2.2% yield of Thai 10-year government bonds. This suggests that valuations are still attractive, especially if bond yields stabilize as expected. However, they pointed out that inflation spikes caused by rising oil prices could put pressure on demand, and increasing utility and operating expenses could erode REIT profit margins. DBS Group favors defensive REITs with resilient cash flows, such as Frasers Property Thailand Industrial Freehold & Leasehold REIT and INET Freehold & Leasehold REIT.