Inflation is unmistakably on the rise around the world. The US Labour Department said that consumer prices jumped by 7.5% in January, the highest level in the past four decades. The effect can be felt in Singapore too. We’ve seen a core inflation rate of 2.4%, the highest in more than nine years in January. As a result, the US Federal Reserve is pledging to raise interest rates. Rising interest rates causing REITs to underperform A common understanding is that rising interest rates will cause REITs to underperform. Singapore’s REIT sector has not escaped unscathed. Almost 50% of the 44 Singapore REITs were trading close to their 52-week lows in January. Frasers Centrepoint Trust (SGX: J69U), a retail REIT that owns suburban shopping malls, has fallen close to its year-low of S$2.22. And Mapletree Logistics Trust (SGX: M44U), a reputable logistics-focused REIT, has also declined to trade close to its 52-week low of S$1.68....