Sias urges Reits to continue with payouts if cash flows permit

Singapore

THE Covid-19 pandemic is affecting all businesses, including Reits. The circuit breaker implemented on April 7 has made revenue generation a challenge for almost all sectors of the economy. This is severely impacting the revenues of tenants of the Reits, which in turn negatively impacts the revenues of the Reits.

In addition, a new bill introduced recently to help businesses during this unprecedented time gives businesses a reprieve from their contractual obligations. Tenants can request for rental deferments, potentially depriving a Reit of rental of income for up to six months.