MAS review on REIT debt limits to drive DPUs, says Morgan Stanley

0

A move by Singapore’s central bank to review gearing gearing limits for REITs has been cheered by Morgan Stanley as one that could ultimately result in higher distribution per unit (DPUs) across the sector.

The Monetary Authority of Singapore (MAS) announced on 2 July that it is seeking views on raising the gearing limit for Singapore-listed REITs to 50%, or higher.

“The industry has provided feedback that at the current leverage limit of 45%, REITs face challenges when competing against other bidders such as private equity funds, property companies and foreign REITs” said Abigail Ng, Executive Director of MAS, at the REITAS conference 2019.

Missing out on information beyond mainstream media reports?
Login or sign-up for a free 25-day trial here.

Full access to all editorial materials
Unlimited access to our seminars and classes
Site visit activities

Share.

Comments are closed.