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S-Reits falter as investors weigh possibility of zero rate cuts in 2024 

Analysts point out that changing expectations over the high interest rate environment has once again been a contributing factor for its underperformance

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Raphael Lim

Raphael Lim

Published Fri, Apr 26, 2024 · 05:00 AM
    • In the scenario of no cuts in 2024, and heightened geopolitical tensions, the markets will likely seek safety in S-Reits with relatively healthier financial metrics such as low gearing levels and higher interest coverage ratios, DBS analysts say.
    • In the scenario of no cuts in 2024, and heightened geopolitical tensions, the markets will likely seek safety in S-Reits with relatively healthier financial metrics such as low gearing levels and higher interest coverage ratios, DBS analysts say. PHOTO: BT FILE

    PRICES of Singapore-listed real estate investment trusts (S-Reits) have faced volatile trading in the past two weeks as interest rate expectations adjust following strong inflation data in the US.

    The iEdge S-Reit index sank to 974.08 on Apr 19, close to the multi-year lows registered in October 2023, before rebounding slightly to 1,005.27 on Apr 25.

    Analysts point out that changing expectations over the high interest rate environment has once again been a contributing factor for the underperformance of S-Reits.

    S-ReitsInterest ratesUS Federal ReserveSpotlight

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