Most Reits raise DPU despite US tapering
Their debt is locked at favourable rates, ahead of inevitable rise in interest rates
MOST real estate investment trusts (Reits) here improved on their distribution per unit (DPU) in the last reported quarter, despite a less-than-rosy outlook in light of the United States Federal Reserve's tapering of its stimulus programme.
Based on a survey of Reits that have since turned in their October-to-December report cards, this can be attributed to the fact that most of them have locked in most of their debt at favourable interest rates, ahead of the inevitable rise in rates.
Broadly speaking, Reits in the office and retail sector did well. The best performer, by way of improvement in DPU, was Frasers Commercial Trust. Its Q1 DPU jumped 29.7 per cent from 1.58 cents a year ago to 2.05 cents in the last reported quarter.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
DigitalBridge-backed Vantage said to weigh Hong Kong data centres sale
Vietnam delays launch of new stock trading system
Tesla’s plan for affordable cars takes page from Detroit rivals
Meituan to debut in Riyadh as expansion beyond China quickens
Mapletree Industrial Trust to distribute S$13 million of divestment gains over next 4 quarters
K-pop agency Hybe’s internal strife wipes out 1.2 trillion won