Fed's Interest-Rate Path Could Dictate Singapore REITs' Unit Prices

Dow Jones12-03

The U.S. Fed's interest-rate path could dictate the unit performance of Singapore-listed real estate investment trusts, says OCBC Investment Research in a note. The research team expects a "more measured" pace of rate cuts by the Fed in 2026 compared with market expectations.

OCBC's expected rate trajectory could curtail REITs' price performances, they say. Still, REITs may see an inflection point for their DPU growth next year amid a more favorable interest-rate backdrop, they note.

But tailwinds from interest cost savings may be uneven among the REITs, depending on their hedges and maturity profile, the analysts add. Retail remains OCBC's preferred subsector, followed by logistics and industrial REITs with a data center focus. Top picks include CapitaLand Integrated Commercial Trust and Keppel DC REIT.

At the request of the copyright holder, you need to log in to view this content

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