Moody's expects stable outlook for S-Reits in 2014
THE outlook is stable for the Singapore real estate investment trust sector next year, with Moody's 13 rated S-Reits expected to grow by 4 per cent, fuelled by a larger asset base and rent increases on existing properties.
Overall occupancy and rental rates are expected to remain stable, but the warehousing segment - where Mapletree Logistics Trust and Cache Logistics have the largest exposure - will have potential weakness from a spike in the supply of new warehouse space, said the rating agency.
That being said, however, it is estimated that about 40 per cent of this space has been pre-committed by end-users, so this may mitigate the impact of the enlarged supply.
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