S-Reits can weather rising inflation to gain returns, says OCBC

Singapore

SINGAPORE-LISTED real estate investment trusts (S-Reits) should be able to mitigate rising inflation, despite higher inflationary pressure possibly impacting margins in the sector, said OCBC Investment Research on Tuesday (Mar 1).

In a research note, the brokerage highlighted some tactics S-Reits can employ to alleviate inflation concerns, which include engaging in bulk purchase of electricity, passing through higher utility costs to tenants as higher service charges and using automation technology to reduce manpower costs.