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.