SINGAPORE - Deals to take private Singapore's real estate investment trusts (REITs) are expected to gain momentum as the companies reel under rising interest rates and fierce competition to buy assets, bankers and analysts said. The trend in the sector, which is worth $7 billion, was underscored by a proposal this week by Frasers Property Ltd (FPL), part of Thai.
Deals to take private Singapore's real estate investment trusts (REITs) are expected to gain momentum as the companies reel under rising interest rates and fierce competition to buy assets, bankers and analysts said.
Deals to take private Singapore's real estate investment trusts (REITs) are expected to gain momentum as the companies reel under rising interest rates
What is a REIT?
A REIT is a real estate investment trust, a company that owns, operates or finances income-producing real estate – whether that’s from the properties themselves, debt or the mortgages.
REITs enable retail investors to access real estate assets in much the same way they would any other financial market. This provides the opportunity to diversify their holdings, as well as access dividend-based income.
REITs have suffered amid the global pandemic. So, when you look at the 12-month average, you’ll see that REITs underperformed the rest of the market amid the crisis. The FTSE NAREIT Equity Index had returns of -8.00, while the S&P 500 recovered to have returns of 18.4%.
THE manager of Ascendas Reit has signalled a continued flattish to low positive single-digit rent reversion for its portfolio in Singapore, Australia, United Kingdom and United States in FY21. Read more at The Business Times.