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More information from Reit managers could comfort investors as inflation, interest rates surge

Jude Chan
Published Tue, Jul 26, 2022 · 05:50 AM
    • MLT noted that every potential 25 bps increase in base rates may result in a S$0.0001 reduction in its DPU per quarter.
    • MLT noted that every potential 25 bps increase in base rates may result in a S$0.0001 reduction in its DPU per quarter. PHOTO: MAPLETREE LOGISTICS TRUST

    SURGING inflation and interest rate hikes are likely to be at the top of the minds of investors in Singapore-listed real estate investment trusts (S-Reits), as earnings season rolls in.

    After all, the European Central Bank (ECB) late last week hiked interest rates for the first time in over a decade, while the US Federal Reserve is expected to increase rates again later this week.

    A Reuters poll of economists pointed to the likelihood of a 75 basis point (bps) hike by the US Fed.

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