In view of the hikes, Koh believes that S-REITs with high interest coverage ratios and long average maturity of debts will be better able to cope with higher interest rates.
On Sept 22, the US Federal Reserve signalled that it could start tapering bond purchases in November, while interest rate hikes could potentially happen next year.
Pursuant to the Fed's announcement, UOB Kay Hian analyst Jonathan Koh has reiterated his "overweight" rating for the Singapore REITs (S-REITs) in a Sept 24 research note.
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