We see clouds on the horizon, with 2H22 retail tenant sales growth likely to moderate as impact of higher cost of living, and uplift from EPF withdrawals and revenge spending dissipates. Further, while we expect recovery in the hotel sector, RevPAR upside is likely to be capped by a 1011% increase in KL room supply this year. Overall, with concerns on slowing 2023 economic growth, we turn more defensive and downgrade Sunway REIT to N with lower PT of RM1.50 due to: 1) strong YTD performance (+7.8% versus KLCI Index -7.0%); 2) highest sensitivity to rising rates (5% DPU impact for 100bps change in floating rate debt); and (3) most of the recovery being priced in given yield spreads of 1.3% (0.2 s.d. above mean). KLCC (OW, PT of RM7.10) is our top M-REIT pick, for its defensiveness arising from long office leases with Petronas.