Most Reits raise DPU despite US tapering

MOST real estate investment trusts (Reits) here improved on their distribution per unit (DPU) in the last reported quarter, despite a less-than-rosy outlook in light of the United States Federal Reserve's tapering of its stimulus programme.

Based on a survey of Reits that have since turned in their October-to-December report cards, this can be attributed to the fact that most of them have locked in most of their debt at favourable interest rates, ahead of the inevitable rise in rates.

Broadly speaking, Reits in the office and retail sector did well. The best performer, by way of improvement in DPU, was Frasers Commercial Trust. Its Q1 DPU jumped 29.7 per cent from 1.58 cents a year ago to 2.05 cents in the last repor…