Spooked by rate-hike fears, S-Reit sell-off could offer opportunity to dive in

SINGAPORE-LISTED real estate investment trusts (S-Reits) have suffered a scathing sell-off so far in 2022, as fears over impending US Federal Reserve interest rate hikes loom. But could the run on Reits have been grossly overdone?

The iEdge S-Reit Index has fallen 5.5 per cent in the year to date. In contrast, the benchmark Straits Times Index (STI) has gained 7.8 per cent as at Feb 7.

A large part of the Reits' weakness stems from consensus expectations that the US Fed will raise interest rates between 4 and 5 times in 2022.