It has been a while now since I last posted an article update on S-Reits. The last time I did that was back in Aug last year and it has been slightly more than 6 months since. For those who are interested in my previous update, you can refer to the article here.
The news surrounding the impending increase in interest rates is gaining momentum now and I think as a vested investor in S-Reits, we need to understand the consequences of an increase in interest rates which will affect the company’s cost of doing business and their bottomline, which in turn will affect the distribution income paid to shareholders as dividends.
I've actually turned bearish on S-Reits stocks since the start of the year. With valuations to their compressing yield spread and book value rather high, plus the impending increase in their respective cost of debts, I doubt they will be able to sustain their relative high valuations for ......