The Business Times
business-time-50
SUBSCRIBERS

S-Reits expected to report muted performance this earnings season as interest costs stay high

google-preferred-sourceAdd BT as a preferred source
Raphael Lim

Raphael Lim

Published Mon, Jan 22, 2024 · 05:00 AM
    • Reit analysts are keeping a close eye on occupancy resilience and rental reversions in the upcoming earnings season.
    • Reit analysts are keeping a close eye on occupancy resilience and rental reversions in the upcoming earnings season. PHOTO: NG SOR LUAN, ST

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    SINGAPORE-LISTED real estate investment trusts (S-Reits) may have enjoyed a strong rally towards the end of 2023 as peaking interest rates lifted investor confidence, but analysts are expecting subdued performance from the sector for the period ended December.

    Market watchers warned that interest costs are still likely to trend upwards and weigh on distributions in this results reporting season, and urged investors to keep an eye on S-Reits’ balance sheets amid expectations of portfolio valuation declines.

    “Overall sector performance is expected to be subdued in terms of distribution per unit (DPU) growth, given the continued drag from higher interest rates,” said head of OCBC investment research Carmen Lee.

    Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

    S-ReitsFinancial resultsReitsSpotlight

    Copyright SPH Media. All rights reserved.

    Reuse this contentFeedback

    TRENDING NOW

    Air India has been one of the foreign carriers most affected by the outbreak of hostilities in the Middle East.

    Air India asks Tata, Singapore Airlines for funds after US$2.4 billion loss

    In this economy, the smartest bets might no longer be sitting an ocean away, but are waiting right here at home.

    ‘Boring’ is the new black: The stars are aligning for a Singapore stock market revival

    Malaysia Madani, or Civil Malaysia, is Prime Minister Anwar Ibrahim's slogan encapsulating positive values (such as humanity and strong governance) that would shape policy direction. But the "corporate mafia" claims have now cast the spotlight on governance credibility.

    From 1MDB to ‘corporate mafia’: Is Malaysia facing a new governance test?

    Malaysia ranks 23rd globally on the Milken Institute’s global opportunity index.

    South-east Asian markets account for 8.8% of global capital inflows from 2021 to 2024: report

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More