Stable 2014 outlook for S-Reits: Moody's

[CityFarmer]

REITs are still OK for 2014, base on Moody's view. I assume property sector has the same rating...

Stable 2014 outlook for S-Reits: Moody's

THE outlook is stable for the Singapore Real Estate Investment Trust (S-Reit) sector in 2014, with Moody's 13 rated S-Reits expected to grow by 4 per cent in 2014, fuelled by a larger asset base and rent increases on existing properties.

Overall, occupancy and rental rates should remain stable, supported by a manageable pipeline of new supply across most segments and proactive lease management to pre-commit rentals in advance of expiry, said Moody's yesterday.

"We could move to a positive outlook if strength in the economy leads EBITDA (earnings before interest, taxes, depreciation, and amortisation) to grow by 10 per cent or more. Conversely, we could move to a negative outlook if a deterioration in the operating environment causes a decline in EBITDA and fall in asset values of 10 per cent or more," it said.

Source: Business Times Breaking News

[NTL]

Most of the news from the REITs is the inability to find suitable properties for acquisition. So the growth maybe in other ways, such as companies spinning off their properties to REITs to "extract" values from it.

I have also heard (not verified) that REITs may not be able to acquire properties as easily as before in Singapore, as the industry is unhappy that REITs keep increasing the rental and driving up the operating cost. Maybe that's why now the REITs are all looking out of Singapore for properties?