MAS is right to resist push for even looser leverage requirements for Singapore Reits
A more liberal regulatory stance towards these trusts – including the ones that are here just for the external manager model – may be a recipe for trouble
Add BT as a preferred source
SOME respondents to the recent public consultation on amendments to the leverage requirements for real estate investment trusts (Reits) had a rather audacious request.
They wanted volatility in foreign exchange and interest rates as well as tenant defaults to be considered as events beyond the control of a Reit’s manager.
Reits have to maintain an interest coverage ratio (ICR) of at least 1.5 times, but this requirement would not be considered breached if a Reit’s ICR falls below the minimum threshold due to circumstances beyond the control of its manager.
TRENDING NOW
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why
MAS convenes bank CEOs over AI cyberthreats; boards told to own risks, not leave to IT teams
Is it time to scrap COE categories for cars?
