Credit-friendly climate could spur debt-funded growth for S-Reits: NUS

[SINGAPORE] Today’s “credit-friendly” environment is setting the scene for Singapore-listed Reits to take on more debt in 2026 to fund acquisitions for growth, a National University of Singapore (NUS) survey done in February showed.

Some 59 per cent of real estate players polled expect Singapore real estate investment trusts (S-Reits) to lean towards debt-funded acquisitions rather than equity fundraising, as refinancing conditions improve and costly borrowings from the previous tightening cycle mature.

“With interest rates likely to bottom out in the near future, we are seeing a strategic window for S-Reits to recaliberate their capital structures after maintaining a defensive posture over the past few years,” said Professor Qian Wenlan, director of the Institute of Real Estate and Urban Studies at NUS.