Concerns on oversupply of commercial properties is still clouding the REIT segment and judging from incoming supply, we believe that this issue is far from over. With over 20m sf of mall and office NLA expected to enter the market by end-17, occupancy rates and rental reversion for mass commercial properties will remain under pressure. However, we believe that the prime and niche commercial property segments will remain resilient. Maintain MARKET WEIGHT. Top pick: IGB REIT.

Source: UOB Kay Hian Research - 25 Sept 2017