Cromwell European REIT property in Amsterdam, De Ruijterkade 5 (Photo: Google Maps)

Singapore-listed REITs extended their year-to-date losses on 14 June after the US Federal Reserve announced a second rate hike for 2018.

The benchmark lending rate has been raised to a range of 1.75% - 2%, and the country’s central bankers have indicated that these may be increased further to around 2.4% by end-2018, instead of the 2.1% projected earlier.

This raises the possibility of two more rate increases for the rest of 2018, and a further four hikes across 2019.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.