Singapore Reits offer value against HK, US peers

Singapore

AS THE US Federal Reserve prepares to hike interest rates for the first time since 2006, there are differing views on the impact on Singapore real estate investment trusts (Reits).

On the one hand, the effect of the rate hike on Reit income will be minimal as the impact on interest costs will be spread out over many years, said Pearly Yap, a portfolio manager with Eastspring Investments.

Ms Yap, who manages around US$170 million of Asia property and Reit portfolios, also noted that Singapore Reits offer good value relative to its peers in Hong Kong, Japan and the US.

However, investors shun Singapore Reits because of the depreciating Singapore dollar and concerns that too much private bank or pr…