You are here

Retail Reits have priced in Covid-19 impact, say analysts

They reckon the Reits will take reference from the US Federal Reserve's rate movements from this point on

BT_20200306_LMXREITS6_4053414.jpg
A Citi report last month said Reits that give a maximum of half a month's rental rebate could depress their DPUs by 2.3 to 5.7%. With some mall tenants asking for as much as three months of rental rebates, the impact on DPU could be greater on some retail Reits.

Singapore

RETAIL Reit prices have been blown cold by rental relief measures, and then hot again by the US Federal Reserve's surprise rate cut.

Analysts believe that current Reit prices have already either fully or partially priced in the impact of temporary rent-relief measures and...