Reits have cushion against tenants in trouble: DBS
They typically have a diversified tenant base, can draw on rental deposits for at least 6 months, it says
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Singapore
ISSUES with tenants are "unavoidable" but are unlikely to concern real estate investment trusts (Reits) as most of them are diversified and have measures in place, said DBS Group amid news of some Reits being briefly impacted after CWT's parent defaulted on a loan agreement.
"It's unavoidable, things happen to tenants," said DBS head of capital markets Eng-Kwok Seat Moey on Thursday, when asked how corporate tenants in trouble could drag down Reits in Singapore's office and logistics space.
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