Better year expected for S-Reits as data centre, hospitality players top volatile 2023

MARKET watchers are expecting fortunes to turn for Singapore-listed real estate investment trusts (S-Reits) in 2024, as interest rate fears abate amid signs of stabilising inflation.

This comes after S-Reits faced volatile trading in 2023, with the yield-sensitive instrument heavily affected by changes in interest rate expectations through the year.

“We think the biggest catalyst for S-Reits this year is definitely a pivot in the interest rates. This will take off some pressure faced by S-Reits refinancing their debt in 2024,” said Morningstar analyst Xavier Lee.