Financing cost won't be droppi

Financing cost won't be dropping so fast. Many REITs signed their financing packages when intetest rates were almost zero pre-covid. Today, interest rates are at 40-yr high (referring to Fed rates).

Interest rates may be reduced soon BUT will not return to pre-covid levels. Hence, when REITs refinance their loans in the near future, they will still be subjected to higher rates compared to their pre-covid arrangements. Does the above make sense ?

Which S-REITs Bring You the Most Profit?

Fed is set to cut interest rates in September. In a low-interest-rate environment, the return on fixed-income assets declines, making REITs more attractive. Higher Yield: The average dividend yield for S-REITs is 7.1%, significantly higher than the yield on Singapore government bonds. Regular Income: S-REITs usually distribute dividends quarterly or semi-annually, providing investors with a steady cash flow. Tax Benefits: REITs that invest in Singapore real estate can enjoy tax transparency by distributing at least 90% of their taxable income to unit holders, thereby avoiding double taxation

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

snuggix
09-03
snuggix
Absolutely, it makes perfect sense
Ray19
09-03
Ray19
Great article, would you like to share it?

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