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CapitaLand’s profit warning points to a sobering reporting season for Reits with foreign exposure

Investors should critically assess plans by sponsor groups to sustain the viability of their Reits in the face of persistently high interest rates

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Ben Paul

Ben Paul

Published Mon, Jan 8, 2024 · 05:00 AM
    • The Fed sparked a big global market rally in December, before news of CapitaLand Investment's fair value losses could sink in.
    • The Fed sparked a big global market rally in December, before news of CapitaLand Investment's fair value losses could sink in. PHOTO: BT FILE

    AS 2023 drew to a close, CapitaLand Investment made an announcement that unitholders of many real estate investment trusts (Reits) should have found troubling.

    The global real estate investment manager said on Dec 8 that it expects to report a significant decrease in earnings for 2023, due to fair value losses on its investment properties in markets such as China, Australia, Europe, the United Kingdom and the United States.

    It said the fair value losses arose due to higher capitalisation rates and weaker market sentiment.

    BT CorrespondentsSingapore REITsS-ReitsCapitaLand Investmentmanulife us reitCapitaland Ascendas ReitCAPITALAND ASCOTT TRUSTIReit Globalcromwell e-reit

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