S-Reit DPUs remain weak in Q1 but sector expected to ride out interest rate woes

REAL estate investment trusts (S-Reits), including property trusts, logged a sluggish performance in the first quarter of 2024 as sector headwinds of high interest rates and a strong Singapore dollar continued to weigh.

Of the 14 trusts that provided distribution per unit (DPU) data during their latest results or business updates, 11 reported year-on-year declines during the latest reporting period, data compiled by BT showed.

Analysts say the subdued showing was in line with expectations, but some also believe that the sector may be in a better position to ride out the higher-for-longer rate environment.