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More S-Reits could be at risk of suspending distributions

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.

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