Most S-REITs have reported resilient operations in their latest set of results for the January-to-March quarter, with certain metrics, such as rental reversions, coming in stronger than expected, they add.
Singapore’s REITs are slowly, but steadily, improving, say HSBC Global Research analysts Joy Wang and Rayson Khoo in a May 15 note. S-REITs are in better shape than they were two years ago, and a higher-for-longer rate scenario is the analysts’ base case.
The shift in interest rate expectations has pushed out hopes for a quick reboot to the S-REIT sector, say Wang and Khoo. “However, we are seeing financial metrics stabilising on margins, despite volatility in interest rates.”
