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."