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It has almost been a year since MOF, IRAS and MAS announced new measures to provide SREITs with greater flexibility to manage their cash flows and raise funds due to the COVID-19 pandemic. The announcement was made on 16 April 2020, which cover: 1) Leverage limit (gearing ratio) raised from 45% to 50% 2) Defer new minimum interest coverage ratio (ICR) requirement to 1 January 2022 in which requires SREITs to have a minimum ICR of 2.5 times before they are allowed to increase gearing ratio beyond 45%, up to 50%. 3) Extension of the permissible period for distribution of taxable income for up to 12 months from the end of their financial year (FY) 2020 to distribute their taxable income derived in FY2020, to qualify for tax transparency treatment.
On 23 June 2020, MOF and IRAS...