Size helps but it's not a panacea for Reits seeking to re-rate
Underlying properties should deliver growth consistently and sustainably under innovative management
SOME investors like real estate investment trusts (Reits) to be safe if somewhat boring vehicles that pay steady distributions akin to bonds issued by high quality issuers.
But, in the nearly two decades since the first Reit was listed on the Singapore Exchange (SGX), Reits have hardly been boring vehicles. Many Reit managers have been active in scaling up via new acquisitions, which often lead to calls for fresh equity.
The pursuit of scale is also playing out with mergers among Reits. Listed in 2013, Mapletree Greater China Commercial Trust subsequently expanded its investment mandate and changed its name to Mapletree North Asia Commercial Trust (MNACT).
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
Abu Dhabi builder plans US$6.8 billion luxury housing project
JTC to sell hospitality project being built in Punggol Digital District
Mapletree Logistics Trust posts 2.5% drop in Q4 DPU; manager warns of further headwinds
Abu Dhabi developer Aldar posts 88% in Q1 leap
Without a game changer, Sentosa Cove condos will continue underperforming
Church to tackle US housing crisis