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Phillip Capital is maintaining its "equal weight" recommendation on the Singapore industrial REIT sub-sector given the rental market is expected to remain soft and renewal rates stay negative even with the tapering of new supply this year.

Industrial REIT managers have expressed varying degrees of optimism with some believing rents to bottom in 1H18, while others believe it to bottom in 2H18, says the research house.

In a Monday report, analyst Richard Leow says the uncertainty lies in the exact bottom for rents, but believes it should take place by end-2018.