S-Reit investors wary of falling NAVs as interest rates weigh on sentiment

DECLINING net asset values (NAVs) of Singapore-listed real estate investment trusts (S-Reits) are among the top concerns for investors, as portfolio valuations weaken and debt ratios continue to creep up.

Based on data compiled by The Business Times (BT), the managers of 14 of the 27 S-Reits that conducted their annual general meetings (AGMs) over the past month faced questions regarding NAV performance. Unitholders of another six S-Reits voiced concerns over asset valuations.

“We understand why NAV per unit is important to some investors – it is widely associated with the underlying value of a Reit’s real estate assets,” said Morningstar analyst Xavier Lee. “As the value of a Reit’s portfolio appreciates over time, its NAV would grow – all else equal.”