Singapore REITs are using more debt as part of their funding strategies, Fitch Ratings reports. This trend could be a risk to the sector, it said, as it could put more downward pressure on asset yields.
Analysts are expecting Singapore's REITs to slow as the Federal Reserve Bank starts to raise interest rates. Opinions vary on the depth of the effect, with predictions ranging from moderate to bearish.
Chew Tuan Chiong, CEO of Frasers Centrepoint Trust, highlights the "compelling" yields on Singapore REITs compared to government bonds. Increases in interest rates would not affect these REITs over the next two or three years because payments are fixed, he said, and most S-REITs will continue to return high yields by adding new assets.
The Securities and Exchange Commission told fund companies that most social media activity does not need to be reviewed by the Financial Industry Regulatory Authority. Fund companies only need to submit posts that either make specific performance claims or that advertise the merits of a fund.
REITs have shifted from using outside advisory companies to managing such decisions internally, according to REIT veteran Ralph Block. However, for some REITs, external managers make sense. SNL Financial reports that there are 15 public REITs that still use both external advisers and managers.
Singapore REITs dominated cross-border deals in Asia last year, according to CBRE. S-REITs invested slightly more than $2 billion in foreign markets, primarily China. S-REITs are investing abroad for various reasons, including diversification of risk and lack of domestic assets.