S-Reits with higher floating and short-term debt likely to gain immediately from rate cuts

S-Reits with higher floating and short-term debt likely to gain immediately from rate cuts


CDL Hospitality Trusts, Far East Hospitality Trust among those to benefit from rate cuts faster

SINGAPORE-LISTED real estate investment trusts, or S-Reits, that have a lower proportion of fixed rate debt are expected to be immediate beneficiaries from potential interest rate cuts.

Those that have a higher level of debt due to be refinanced over the next one-and-a-half years also stand to benefit sooner from rate cuts, said analysts.

Interest rates are expected to come down this week, when the United States Federal Reserve’s monetary policymaking body meets.



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