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Market keeps watch on S-Reits’ debt levels as rising interest rates crush confidence

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Jude Chan

Jude Chan

Published Wed, Oct 19, 2022 · 05:50 AM
    • Lippo Malls Indonesia Retail Trust (LMIRT) has the highest gearing ratio among the Singapore-listed Reits, at 43.9 per cent as at Jun 30.
    • Lippo Malls Indonesia Retail Trust (LMIRT) has the highest gearing ratio among the Singapore-listed Reits, at 43.9 per cent as at Jun 30. PHOTO: LIPPO KARAWACI

    THE likelihood of a higher-for-longer interest rate environment has gutted investor sentiment towards real estate investment trusts (Reits).

    “The latest projected pace of rate hike (in the September meeting) was higher than market anticipated, which has resulted in heightened market uncertainty,” said RHB analyst Vijay Natarajan. He expects the US Federal Funds Rate to peak at close to 4.6 per cent by 2023.

    The result has been a particularly bruising month for Singapore-listed Reits (S-Reits) in September.

    S-ReitsInterest rates

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