Size helps but it's not a panacea for Reits seeking to re-rate

SOME investors like real estate investment trusts (Reits) to be safe if somewhat boring vehicles that pay steady distributions akin to bonds issued by high quality issuers.

But, in the nearly two decades since the first Reit was listed on the Singapore Exchange (SGX), Reits have hardly been boring vehicles. Many Reit managers have been active in scaling up via new acquisitions, which often lead to calls for fresh equity.

The pursuit of scale is also playing out with mergers among Reits. Listed in 2013, Mapletree Greater China Commercial Trust subsequently expanded its investment mandate and changed its name to Mapletree North Asia Commercial Trust (MNACT).