Resetting of Debt Costs 'Key Challenge' for Aussie REITs -- Market Talk

Dow Jones08-07

2256 GMT - The key challenge for the earnings growth among Australia's real-estate investment trusts continues to be debt costs resetting to a higher spot market rate, and interest rates remaining higher for longer than anticipated, Citi says. Most REITs had a cost of debt below spot rates of 5.5%-6.0%, which is a bearish signal, analyst Suraj Nebhani says. "We see most downside for REITs that have debt costs significantly below spot including Abacus Storage King, Dexus, Charter Hall Long WALE REIT, Abacus Group, and BWP Trust," Citi says. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

August 06, 2024 18:56 ET (22:56 GMT)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2457888949?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-08-07 06:56","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2457888949","market":"sg","top_or_hot":-1,"title":"Resetting of Debt Costs 'Key Challenge' for Aussie REITs -- Market Talk","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<pre>\n \n</pre>\n<p>\n  2256 GMT - The key challenge for the earnings growth among Australia's real-estate investment trusts continues to be debt costs resetting to a higher spot market rate, and interest rates remaining higher for longer than anticipated, Citi says. Most REITs had a cost of debt below spot rates of 5.5%-6.0%, which is a bearish signal, analyst Suraj Nebhani says. \"We see most downside for REITs that have debt costs significantly below spot including Abacus Storage King, <a href=\"https://laohu8.com/S/DXS.AU\">Dexus</a>, Charter Hall Long WALE REIT, <a href=\"https://laohu8.com/S/ABG.AU\">Abacus Group</a>, and BWP Trust,\" Citi says. (david.winning@wsj.com; @dwinningWSJ) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  August 06, 2024 18:56 ET (22:56 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Resetting of Debt Costs 'Key Challenge' for Aussie REITs -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nResetting of Debt Costs 'Key Challenge' for Aussie REITs -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-07 06:56 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>2256 GMT - The key challenge for the earnings growth among Australia's real-estate investment trusts continues to be debt costs resetting to a higher spot market rate, and interest rates remaining ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"DXS.AU","symbol_name":"Dexus","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2457888949","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2457888949","pubTimestamp":1722984960,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"2256 GMT - The key challenge for the earnings growth among Australia's real-estate investment trusts continues to be debt costs resetting to a higher spot market rate, and interest rates remaining higher for longer than anticipated, Citi says. Most REITs had a cost of debt below spot rates of 5.5%-6.0%, which is a bearish signal, analyst Suraj Nebhani says. \"We see most downside for REITs that have debt costs significantly below spot including Abacus Storage King, Dexus, Charter Hall Long WALE REIT, Abacus Group, and BWP Trust,\" Citi says. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"DXS.AU":"Dexus","ABG.AU":"Abacus Group","BK7162":"零售房地产信托","BWP.AU":"BWP TRUST","BK7005":"零售业房地产投资信托","BK7087":"多样化房地产投资信托v","BK7122":"办公房地产投资信托","CFA.SI":"NikkoAM-STC Asia REIT","BK7151":"自存仓储房地产信托","ASK.AU":"ABACUS STORAGE KING","BK7510":"REITs概念","BK7154":"办公室房地产信托","CFA":"VictoryShares US 500 Volatility Wtd ETF","CLW.AU":"CHARTER HALL LONG WALE REIT"},"translate_title":"重置债务成本是澳大利亚房地产投资信托基金的“关键挑战”——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CFA":1,"CFA.SI":1,"ABG.AU":0.9,"ASK.AU":0.9,"BWP.AU":0.9,"CLW.AU":0.9,"DXS.AU":0.9},"content_text":"2256 GMT - The key challenge for the earnings growth among Australia's real-estate investment trusts continues to be debt costs resetting to a higher spot market rate, and interest rates remaining higher for longer than anticipated, Citi says. Most REITs had a cost of debt below spot rates of 5.5%-6.0%, which is a bearish signal, analyst Suraj Nebhani says. \"We see most downside for REITs that have debt costs significantly below spot including Abacus Storage King, Dexus, Charter Hall Long WALE REIT, Abacus Group, and BWP Trust,\" Citi says. (david.winning@wsj.com; @dwinningWSJ) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  August 06, 2024 18:56 ET (22:56 GMT)\n\n\n  Copyright (c) 2024 Dow Jones & Company, Inc.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2457888949"}