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
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 is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Opinion & Features
Singapore offices await a new wave of tenants
Musk has made Tesla a meme stock
The dog ate Japan’s plan to phase out coal power
If inflation continues to build, the Fed won’t be able to maintain neutral stance for long
Last rides and last rites: The rise of the limousine hearse
Beyond US aid, Ukraine needs European allies to step up