Almost all Reits and Business Trusts are paying recurring dividends on quarterly and half yearly basis. The better predictive nature of dividends payment suit the funding requirement for my monthly donations use.
Should we worry of higher interest rates impact on our local Reits?l will not be overly concern on the expected higher interest rates on Reits but l am more concern of the following :-
"A depressed property market could also lead to a negative feedback loop if S-REITs have loan covenants tied to property values, e.g. where a decline in the value of an S-REIT’s property holdings would lead to lending banks requesting for collateral top-ups"
Any views on what will happen to REITs as interest rates both in US and Singapore rises? Asking since your portfolio is reit heavy.
ReplyDeleteAlmost all Reits and Business Trusts are paying recurring dividends on quarterly and half yearly basis. The better predictive nature of dividends payment suit the funding requirement for my monthly donations use.
DeleteShould we worry of higher interest rates impact on our local Reits?l will not be overly concern on the expected higher interest rates on Reits but l am more concern of the following :-
"A depressed property market could also lead to a negative feedback loop if S-REITs have loan covenants tied to property values, e.g. where a decline in the value of an S-REIT’s property holdings would lead to lending banks requesting for collateral top-ups"
Read more here :-
http://www.mas.gov.sg/~/media/resource/publications/fsr/FSR%202014.pdf