EARLIER this week, Frasers Centrepoint Trust (FCT) replaced Philippine spirits maker Emperador as one of the 30 components of the Straits Times Index (STI).

This brings the number of real estate investment trusts (Reits) within the STI to seven – up from six since June last year, when Keppel DC Reit was dropped to make way for Seatrium.

The addition of another Reit to the STI might be surprising to some investors, as it comes in the wake of a bearish shift in interest rate expectations.