The Business Times
business-time-50

More S-Reits could be at risk of suspending distributions

google-preferred-sourceAdd BT as a preferred source
Raphael Lim

Raphael Lim

Published Fri, Mar 15, 2024 · 05:00 AM
    • Manulife US Reit’s Centerpointe I & II, in Fairfax, Virginia. The Reit halted distributions last year, following a breach in loan covenants after valuations fell.
    • Manulife US Reit’s Centerpointe I & II, in Fairfax, Virginia. The Reit halted distributions last year, following a breach in loan covenants after valuations fell. PHOTO: MANULIFE US REIT

    THE high interest rate environment has been punishing for locally-listed real estate investment trusts (S-Reits) amid rising finance costs, and valuations also coming under pressure

    As at the latest financial results for the financial period ended Dec 2023, six of the 40 S-Reits and property trusts have partly or fully halted distributions to unitholders, amid worsening balance sheet metrics.

    Analysts are divided over whether more players are at risk of a similar situation in the coming months.

    S-ReitsInterest rates

    TRENDING NOW

    The 302-unit Cape Royale, completed in 2013, has been the last major new condominium development in Sentosa Cove. 

    Two-thirds of Sentosa Cove resales in the red, with average loss topping S$1 million since 2023

    Singapore’s next chapter should not be framed as a choice between economic growth and social well-being. We need both.

    Singapore at 61: How we can ensure opportunity, security and ownership for the next generation

    Under the Philippines’ new policy, up to four EV models will be provided with as much as 15 billion pesos each in fiscal support, in the form of tax payment certificates.

    Too little, too late? Manila’s billion-dollar bid to ignite its sputtering EV industry

    BYD’s rise to become the No 1 passenger-car seller in Singapore can be described as explosive. 

    How BYD disrupted Singapore’s car market – and why the strategy is turning on itself

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More