** Citi analysts view the recent selloff in Australian REITs as a buying opportunity due to trade policy uncertainty and projected inflation

** Brokerage's positive outlook has also been aided by stable asset values and expected rate cuts in the U.S. and Australia after the February reporting season

** Citi expects reduction of longer-term bond yields over CY25, predicting positive effects on REITs' share price performance

** Charter Hall Group CHC.AX and Lifestyle Communities LIC.AX were upgraded to "buy" rating by Citi post-selloff

** Citi maintains an A$18.50 price target for CHC, expecting recovery in earnings due to stability in asset values and a resurgence of equity flows into Australia

** Brokerage sees the ~20% selloff of LIC since late February as excessive, noting co's financial strength and new CEO

** LIC is also viewed as a potential takeover target according to recent press reports on M&A activity — Citi

** The Australian real estate subindex .AXRE has lost 4.8% this year as of the last trade

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk))