Why rate cuts won't be a magic pill for S-REITs

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When it comes to rate cuts, many REIT investors are expecting it to be a straightforward boost to REIT performance. Personally, I do not think this will be the case and it is quite dangerous to think of it this way, especially if you are holding low-quality REITs...

Timestamps:
00:00 - Introduction
00:38 - Why rate cuts won't fundamentally affect REIT performance much
02:39 - Operating fundamentals would have a bigger impact
04:06 - Conclusion

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SG reits mostly borrow at SORA+ premium for their sgd loan
for blue chip reit it can be 3.7%+0.30% or about 4%
most blue chip reits their borrowing costs are peaking at 3.5% to 4% this year 2024
some blue chip reits will be below this 3.5-4% range if they are able to borrow in CNY/JPY
same cannot be said for sampan reits kekeke

MasterLeong