Analysing REITS

[swakoo]

You forgot to mention reit manager can also use income support to shore up dpu of acquisitions to get more fees, which brings me to another disappointment with this MAS response:

SECTION 5: STRUCTURING OF REITS

A. INCOME SUPPORT ARRANGEMENTS

5.1. MAS invited comments on whether the current approach of relying on disclosure to impose market discipline on the use of income support arrangements is effective, and if not, the additional possible measures that could be considered to address the concerns with the use
of such arrangements.

5.2. Respondents were generally of the view that the current disclosure approach is sufficient, but a few respondents suggested that the use of income support arrangements should be prohibited.

MAS’ Response

5.3. This was another open-ended consultation question to solicit feedback on the effectiveness of the current disclosure-based approach in preventing the abuse of income
support arrangements. Given the feedback and our plans to impose additional ongoing disclosure requirements on income support arrangements (see Section 6), MAS is of the view that further regulatory intervention is not necessary at this stage.