Freer reign for S'pore, HK Reits may see them in riskier areas: S&P

Singapore

THE freer regulatory rein for real estate investment trusts (Reits) in Singapore and Hong Kong will not affect their credit in the next year or so, but may expand their operating strategies into riskier areas, Standard & Poor's (S&P) said in a Monday report.

For instance, the Monetary Authority of Singapore (MAS) recently announced the raising of gearing and development limits for Reits, while giving some unitholders the rights to appoint the directors of Reit managers.

In the longer term, Singapore Reits' (S-Reits) strategies could consequently become oriented towards more development activities, higher gearing and greater flexibility as a result of these …