Chart of the Day: Check out the expected rebound in Singapore REITs' DPUs

The hospitality sector will recover the most.

This chart from DBS Group Research shows that in line with a cyclical recovery in Singapore’s economy, Singapore REITs are expected to see a rebound in distribution per unit (DPU) growth.

This will be led by the hospitality sector, as it is expected to rise 5% in FY18/FY19 after DPU slumped 5% and 3% in the past cycles.

The industrial sector, led by Business Parks, will also post a rebound after a flat DPU growth for the past two years. In FY18/FY19, industrial sector DPU will grow by 2%.

Meanwhile, the office sector growth is seen to be more muted given that most of the leases have been renewed in 2017-2018 with another major round of renewals in 2019.