Singapore REITs Performance Likely Hinges on Interest-Rate Movements -- Market Talk

Dow Jones
05/28

0513 GMT - Singapore real-estate investment trusts' performance continues to hinge on interest-rate movements, Macquarie Capital's Rachel Tan says in a note. The recent U.S. bond selloff and Singapore's higher benchmark interest rate have weighed on the city-state's property sector, she says. Tan notes that the sell-down of U.S. bonds has since moderated, allowing the Singapore benchmark rate to decline to 0.98% around May 22. She expects the rate to remain near 1% until year-end, which should bolster REITs with mostly Singapore assets. The REIT sector has likely priced in most interest-rate risks ahead of potential rate increases, but Tan recommends remaining defensive given the underlying uncertainty. Macquarie's top defensive picks are CapitaLand Integrated Commercial Trust and Parkway Life REIT. (megan.cheah@wsj.com)

 

(END) Dow Jones Newswires

May 28, 2026 01:13 ET (05:13 GMT)

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