Recently-listed stapled security Viva Industrial Trust (VIT) (SGX: T8B) has fallen on its market debut at the Singapore Exchange as market remains cautious on REITs and property trusts.

Viva Industrial Trust fell on its first day of trading at the opening despite promising yields upwards of 8%

Shares of VIT opened its trading day at S$0.765, about 2 per cent lower than its IPO price of S$0.78. Viva Industrial Trust is a stapled security comprising of Viva Industrial Real Estate Investment Trust and Viva Industrial Business Trust. Last week it offered 594,000,000 units in the stapled security. Of this 211,736,000 units were issued pursuant to its IPO.

Fresh concerns over the US Federal Reserve policy emerged over the weekend when Federal Reserve Bank of Dallas President Richard Fisher commented over the weekend that the US housing market is robust and policy makers should resume normal policy as soon as possible. The comment has been largely read as the latest sign yet that tapering might start kicking in soon.

As interest rates rise, borrowing costs of REITs and other listed real estate securities= will increase and eat into potential earnings, reducing its appeal as an asset class as a whole. Related: How Rising Interest Rates Affect REITs.

Viva Industrial Trust is the seventh real estate security to list on the SGX this year.