Investors should not avoid Reits over fears of dilutive equity raisings
Trust managers can drive growth with astute property purchases
Add BT as a preferred source
[SINGAPORE] More stable interest rates should bring much cheer to real estate investment trusts (Reits).
All things being equal, a Reit’s distributable income rises when borrowing costs decline. Also, as low-risk alternatives such as Singapore dollar fixed deposits or Treasury bills (T-bills) issued by the Singapore government begin to offer less attractive returns, yield-driven investors may increasingly have to look at Reits.
The cut-off yield for the latest six-month T-bill issued on May 13 was 2.3 per cent per annum, substantially below the 3.7 per cent per annum of the six-month T-bill issued on May 14, 2024.
TRENDING NOW
Lamborghini-driving boss of Eminent Frog Porridge charged with S$3.8 million tax evasion, money laundering
Malaysian tycoon Vincent Tan’s sell-downs point to pruning rather than an exit plan
Taiwan’s wealthy seeks diversification to Singapore, sparking private banking race: Bloomberg
With AI, it’s not about coding better; workers need to think better: Koh Boon Hwee
