Raising leverage ratios may throw some Reits a lifeline, but being selective is still key

REAL estate investment trusts (Reits) with high leverage have been among the worst performers in the sector over the past year.

The dismal showing comes amid challenges both from higher rates and less favourable business conditions.

For example, amid changing post-pandemic work-from-home trends, the three US office Reits – Manulife US Reit, Prime US Reit and Keppel Pacific Oak US Reit – are among the four worst performing S-Reits over the past year.