“For the time being, interest rates seem to have flattened and the Fed has also moderated its stance on rates,” notes David Snyder, CEO of KORE’s manager. This is seen to have a net positive impact on REITs.
SINGAPORE (Mar 4): The two local real estate investment trusts (REITs) with US properties have moved up handsomely since the start of the year for two main reasons: clarity on tax and a dovish-sounding US Federal Reserve.
Clarity from the US Department of the Treasury on Dec 20, 2018 on proposed regulations under the US Tax Cuts and Jobs Act for REITs led to a price rally at the beginning of the year. Manulife US Real Estate Investment Trust (MUST) and Keppel-KBS US REIT (KORE) announced on Dec 27 that their current trust structures do not need to be changed to maximise distributable income (DI).
