Risk-free rates dictate how low S-REITs go

It has been indicated often by this publication that interest rates impact REITs in three main ways. First and foremost, the most important in the short-term is the yield spread where REIT unit prices are affected as a result of the yield spread; secondly, DPU is impacted as interest expense rises or falls; and thirdly, they affect capital values or valuation of the properties in other words. As 2H2022 unfolded, it was clear that the yield spread took centre stage.