Extreme weather means higher costs for S-REITs; 70% struggle balancing sustainability, DPU growth: REITAS, Knight Frank

Extreme climate events have led to higher heating and cooling costs among 58% of Singapore-listed REITs (S-REITs) in the past three years, while 47% faced increased spending on protective measures to safeguard assets against future climate risks.

This could be affecting S-REITs’ stability as a yield play. Seven in 10 S-REIT respondents face difficulties in balancing portfolio decarbonisation with short-term distribution per unit (DPU) payout expectations, according to a joint study by Knight Frank and the REIT Association of Singapore (REITAS) that examined sustainability reports from 40 S-REITs and surveyed 33 REIT managers.