Singapore REITs'' Re-Rating To Continue -Deutsche

[Dow Jones] Singapore REITs'' re-rating should continue as the market prices in positive near-term outlook, says Deutsche Bank. Says re-rating to be driven by good trading performances, availability of funding allowing acquisitions, steady physical asset markets. "We see a return to a virtuous cycle for the larger REITs, which have demonstrated their ability to raise capital and acquire assets." Prefers larger REITs that are able to deliver organic growth, raise funding, gain market share. Says smaller REITs may be takeover targets if deep discounts to net assets persist. Top picks are CapitaMall Trust (C38U.SG), Suntec REIT (T82U.SG), Ascendas REIT (A17U.SG); all rated Buy with target prices of S$4.07, S$2.16, S$2.92, respectively. FTSE ST Real Estate Investment Trust index up 1.4% at 830.88 vs FTSE ST All Share +4.8%