Higher rates manageable for Reits, but mind rich fees and alignment of manager-investor interests
When Reits underperform, sponsors’ pain is eased by earning substantial management fees Read more at The Business Times.
When Reits underperform, sponsors’ pain is eased by earning substantial management fees
[SINGAPORE] The real estate investment trust (Reit) sector in Singapore had a rocky start, with the first attempted Reit listing in 2001 failing due to insufficient demand.
Nonetheless, the sector has grown strongly since the first Reit successfully debuted on the local bourse in 2002. Eight members of the 30-strong benchmark Straits Times Index (STI) are Reits. Helped by successful capital raisings, various trusts have become much bigger over time.
However, as the sector turns 25 next year, could higher interest rates roil Singapore Reits?
Originally published by businesstimes.com.sg. Syndicated material does not necessarily reflect the views of Glamour Canada.
