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Asset enhancements could bring some warmth to S-Reits amid acquisition winter

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Jude Chan

Jude Chan

Published Thu, Apr 13, 2023 · 05:50 AM
    • Frasers Centrepoint Trust and sponsor Frasers Property jointly acquired a 50 per cent stake in suburban mall Nex for S$652.5 million.
    • Frasers Centrepoint Trust and sponsor Frasers Property jointly acquired a 50 per cent stake in suburban mall Nex for S$652.5 million. PHOTO: MERCATUS CO-OPERATIVE

    RISING interest rates have all but frozen the acquisition of properties by Singapore-listed real estate investment trusts (S-Reits) – choking off a key source of net property income (NPI) and distribution per unit (DPU) growth.

    Analysts said there are still some opportunities for accretive acquisitions in the market. Under the current cloud of uncertainty, however, they expect Reit managers to switch tack and focus on asset enhancements instead.

    There have been four proposed property acquisitions in the first quarter of 2023. Three of them happened in the same month.

    S-ReitsM&ASpotlight

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