. ‘ Listed real estate Preference: neutral UBS Global Index DTR (28 June): 1,375 (last month: 1,320) Recommendations UBS View UBS Global Index DTR (6-month target): 1,400 Tactical (6 months) ¢ A slight positive monthly performance has been driven by rebounds in the higher beta markets, * We maintain our neutral stance towards respectively Hong Kong, Japan and Singapore. listed real estate after a good performance ¢ Listed real estate is still attractively valued on different earnings ratios and trade on a slight discount to year-to-date and due to a relative less NAV. Earnings yields over 5 year swap rate are attractive currently attractive, yet the flattening of interest attractive valuation compared to global curves has come to a halt and we see less support from it in the future. equities. Going forward returns are limited e Little supply of commercial space across the globe leads vacancy rates to gradually decline and low by subdued revenue growth. However, we capitalization rates in core markets support capital values. Also rental yields remain attractive compared to still expect listed real estate to stay high grade bond yields. However, further significant capital appreciation is unlikely. This is especially duea comparatively attractive in a low growth, slow down in rental income as economic growth is subdued. Hence, future performance is limited. : : pane ; ow rates environment. e Although slightly reduced, we maintain our preference for US REITs due to stable fundamentals and like ; Australia as a conservative play. We slightly overweight Hong Kong, stay neutral towards Singapore, but strategic {1 ta 2 yeurs) _ maintain a slight underweight in Japan as fundamentals remain unconvincing. ° A cyclical slowdown in rents limits growth, = : but attractive refinancing conditions are a Positive scenario - UBS Global Index DTR (6-month target): 1,500 supportive. We see potential for higher ¢ Improving macroeconomic data in the US, positive economic surprises in Eur