It's not debt but how Reits leverage on it that matters

EARLY this month, the Monetary Authority of Singapore (MAS) said it was reviewing the 45 per cent leverage ceiling for Singapore-listed real estate investment trusts (S-Reits).

The S-Reit sector has been lobbying for higher leverage - a measure of how well capitalised a company is as defined by its debt-to-asset ratio - for some time now.

The last time the leverage limit was changed was in 2015 when MAS raised it to the current 45 per cent, from 35 per cent of the fund's deposited property, in a move to boost Reits' operational flexibility to rejuvenate maturing portfolio of assets.