As the Fed hikes interest rates, S-Reits sector could be overdue for consolidation
The case for fewer, bigger trusts keeps getting stronger, with interest rates going up and most S-Reits still trading below book
[SINGAPORE] Walk into any hawker centre at lunch and you will see the same thing: Two or three stalls have queues snaking past the drinks stand; the rest have stallholders staring at their phones.
The busy ones can raise prices and open a second outlet. The quiet ones hang on, dishing up one plate at a time.
The Singapore-listed real estate investment trust (S-Reit) market looks a lot like this. There are 39 active Reits on the Singapore Exchange, worth US$76.7 billion in total, noted Cushman & Wakefield’s Asia Reit Market Insight report released on Monday (Sep 21).