Higher rates manageable for Reits, but mind rich fees and alignment of manager-investor interests
When such trusts underperform, sponsors’ pain is eased by earning substantial management fees
[SINGAPORE] The real estate investment trust (Reit) sector in Singapore had a rocky start, with the first attempted Reit listing in 2001 failing due to insufficient demand.
Nonetheless, the sector has grown strongly since the first Reit successfully debuted on the local bourse in 2002. Eight members of the 30-strong benchmark Straits Times Index (STI) are Reits. Helped by successful capital raisings, various trusts have become much bigger over time.
However, as the sector turns 25 next year, could higher interest rates roil Singapore Reits?
TRENDING NOW
Government to bring forward raising of retirement age, give employers more financial support to create flexi-load jobs
If Europe goes to war, the fallout will be felt in East Asia
Indonesia stocks suffer worst plunge in nearly 30 years as MSCI proposes standalone status
Vietnam’s northern provinces, not Hanoi or Ho Chi Minh City, are powering near 10% GDP growth
