Hong Kong imposes a leverage limit of 45% while Malaysia imposes a 50% limit. Thailand allows REITs to leverage up to 60% if they have an investment-grade credit rating, while countries such as Belgium, Germany and the Netherlands have limits ranging from 60% to 66.25%.
Singapore (12 July): On July 2, the Monetary Authority of Singapore published a consultation paper to consider raising the regulatory gearing limit (debt-to-asset ratio) for real estate investment trusts from the current 45%, and to introduce a minimum interest coverage ratio (ICR).
Through the paper, MAS also aimed to seek views on whether S-REITs with a higher ICR threshold should be allowed a higher leverage, say 55%.
