- Monetary Authority of Singapore’s (MAS) proposal to simplify and slightly relax gearing and interest coverage ratio (ICR) requirements for S-REITs is a positive step, and provides greater flexibility and clarity in current high interest rate environment while ensuring prudence.
- It also gradually shifts the managing appropriate debt levels onus to REIT managers and market mechanisms. If implemented, it will be a slight positive overall for the sector, and mainly benefit a few of the large-cap S-REITs with above 40% gearing and smaller overseas REITs.
A slight relaxation and simplification of leverage requirements for S-REITs.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- The proposal is currently open to public for views and suggestions until 23 Aug 2024.
Proposed changes reflective of a higher interest rate era.
- Read more at SGinvestors.io.
Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2024-07-25
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