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Singapore REITs set for broader recovery after Q1 Covid-19 hit (The Straits Times)

September 24, 2020 (The Straits Times) – Singapore’s real estate investment trusts (Reits) have survived the worst stretch of the coronavirus pandemic and are now set to stage a broader rebound.

There were plenty of questions raised about the future of Reits amid the mobility restrictions in the first half of the year, but the sector has performed surprisingly well in terms of share price and other valuations.

For instance, the average gearing ratio of the Reit sector stood at 36.4 per cent as at Aug 31 this year – well below the 50 per cent regulatory limit.

The FTSE ST Reit Index has rebounded 38 per cent since the low point in March, easily outpacing the 13 per cent rise racked up by the Straits Times Index (STI).