Reit dividend growth outlook dismal: HSBC

Singapore

THE growth of Reit dividends is expected to slow down in the coming few years due to the unfavourable supply-and-demand outlook across various property sub-segments: office, retail, hospitality and industrial, HSBC said at a seminar on Tuesday.

The seminar was organised by the Real Estate Developers' Association of Singapore. There, Pratik Burman Ray, HSBC's director and senior property analyst, Asean, said that the two-year distributions per unit (DPU) are expected to grow just 2 per cent from 2015-2017 (lower still at one per cent for major Reits), compared to an average of 4.5 per cent from 2007 to 2014.