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Tweaking regulatory limits for S-Reit gearing seen as double-edged sword

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Raphael Lim

Raphael Lim

Published Tue, Sep 19, 2023 · 05:00 AM
    • Under the current rules, which were revised in 2020 following a public consultation, Reits should not have aggregate leverage exceeding 45 per cent of the funds’ deposited property.
    • Under the current rules, which were revised in 2020 following a public consultation, Reits should not have aggregate leverage exceeding 45 per cent of the funds’ deposited property. PHOTO: BT FILE

    HIGHER interest rates and lower property valuations have pushed aggregate leverage ratios of real estate investment trusts (Reits) towards regulatory limits.

    However, industry watchers are divided on whether tweaks should be made to the gearing ratio limits to offer some relief to the Singapore-listed real estate investment trusts (S-Reits).

    Experts polled by The Business Times (BT) said the need for flexibility needs to be weighed against investor protection considerations.

    S-Reitsdebt capital marketsMonetary Authority of SingaporeSGXSpotlight

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