 Consolidation to accelerate as an alternative growth avenue; M&A and restructuring risks remain elevated for the sector  Office our favourite sector; turn positive on retail, cautious on industrial; interest rate outlook is the main risk for the sector  Downgrade AREIT and FLT to Hold, upgrade FCT to Buy; our  preferred stocks are AIT, CICT, CLI and SUN, all Buy A year of consolidation to grow. After an eventful 2021, we start the new year in  similar fashion with M&A transactions in the SREITs sector. Intense competition for  physical assets, coupled with undemanding valuations for listed real estate  companies and REITs, make consolidation an attractive avenue for growth,  especially as appetite for investments recover. The ongoing corporate activities amongst Temasek-linked companies could also indirectly affect the share price  performance of the sector. We are constructive on the physical real estate market in  Singapore and prefer stocks with a strong growth outlook, high total return potential and low event risks. Our preferred stocks are AIT, CICT, CLI and SUN, all Buy