How would the S-REITs get there? “Our assumptions include: Sector-wide distribution per unit (DPU) yield spread compression alongside 2% DPU growth as well as secondary equity fund raising (EFR)." As a case in point, the two largest REITs have raised equity this year.
What does Singapore at 60 mean for the REIT sector? In a report titled Singapore at 60, Asia's Next Top REIT Market, Morgan Stanley argues that by 2035, Singapore will be the leading REIT market in Apac, overtaking Japan and Australia by market capitalisation.
Currently, Singapore trails Japan and Australia. To do this, S-REIT market capitalisation is likely to rise to US$127 billion, the report says.
