"We interpret the move as slightly dovish and mildly positive for the sector. While the sector has been rebounding back and up around 16% year-to-date, it's still 26% below the 2021 peak and is also a laggard compared to other major regional REIT regimes such as Australia and Japan," says Vijay Natarajan, vice president, REITs and real estate, RHB Bank Singapore.
On Sept 17, the US Federal Reserve announced the largely anticipated 25 basis points (bps) rate cut taking the US benchmark target rate range to 4%-4.25%.
More importantly, the majority of the Fed's governors now see two more rate cuts by the end of the year (one higher than June) but only one each in 2026 and 2027.
