Is the Singapore Reit success story coming undone?

SINGAPORE'S real estate investment trusts (Reits) became popular because they had the things local investors love - steady income, high yields and property. Now, it's all turning upside down, and holders need to hope that a round of consolidation comes to their rescue.

With most annual reports in, the picture for the industry isn't inspiring. Investors may not have noticed. Indicated dividend yields have continued untouched even as return on assets has plunged.

If the Reits are still able to pay out the fat dividends investors expect, it's partly thanks to leverage. The median debt-to-assets ratio of the industry has risen to 36 per cent from 31.33 per cent.