HIGHER interest costs continued to weigh on distributions for locally listed real estate investment trusts (S-Reits) in the second half of 2023.
More than three-quarters of the trusts that disclosed distribution per unit (DPU) figures in their latest earnings reports posted year-on-year declines for the financial period ended December 2023.
Just six S-Reits reported DPU improvements, while two had unchanged DPU.
Analysts said the lacklustre performance was largely in line with expectations, even though there were some surprises in certain sectors. They also remain watchful for potential upside from interest rate cuts later this year.
Darren Chan, senior research analyst at Phillip Securities Research,…
