Since my last post on the Singapore Real Estate Investment Trusts (REITS) situation about 2 weeks ago, here is an update of the latest prices following trading in the last few days.
It appears that there is some measure of recovery. A lot of the earlier sell-down appeared to be due to investors conserving cash and fearing that REITS may not be able to sustain their debt obligations.
The Monetary Authority of Singapore (central bank of Singapore) adjusted its policy regarding the credit limits for REITS yesterday (17 Apr) and the prices of almost all the REITS rose. Will this REITS rally continue? Well, I personally think it will depend on the upcoming announcements of the corporate results. The distribution & yields to be announced will cause a re-computation of their stock values and metrics. The next few weeks will be interesting…
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