Debt-funded acquisitions could give S-Reit's DPUs a shot in the arm: report

Singapore

ACCRETIVE acquisitions fully funded by debt could boost distribution per unit (DPU) of Singapore real estate investment trusts (S-Reits) by an average of up to 15 per cent amid low interest rates, said a report by Maybank Kim Eng.

Maybank Kim Eng's head of regional Reits, Chua Su Tye, wrote in the report: "We see stronger growth in assets under management (AUMs) for Singapore Reits, especially those with strong sponsors, as many push ahead on overseas diversification."

He added that DPU visibility should continue to improve on the back of annual growth from lease structures and longer weighted average lease expiries (WALEs), while modest leverage should help with DPU accretion against the backdrop of …

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL