S-Reits to hit ‘turning point’ in coming quarter amid expectations of interest rate cuts

AFTER two years of declining share price performance, analysts believe that Singapore-listed real estate investment trusts (S-Reits) will hit a “turning point” in the coming quarter amid expectations of an interest rate cut by the US Federal Reserve this September.

However, S-Reits are likely to report lower year-on-year distributions in the upcoming earnings season as they continue to refinance maturing low cost of debt, said analysts.

And while United States president Joe Biden’s exit from the presidential election race on Monday (Jul 22) would not have a short-term impact on interest rate cuts, a Trump presidency – which seems increasingly likely – could spell trouble for S-Reits in the longer term, added analysts.