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SGX-Listed US Commercial REITs Are Facing Severe Headwinds: Can Their Share Prices Recover?
By The Smart Investor  •  July 25, 2023
The REIT sector is not having it easy with the twin challenges of high inflation along with surging interest rates. Despite this, REITs can still grow their distribution per unit (DPU) through both organic and acquisitive methods. It gets much tougher, however, if the property sub-type is also facing its own set of challenges. The US commercial property sector is caught in such a situation now, adversely affecting the health and share prices of Singapore-listed US commercial REITs. Year-to-date, Manulife US REIT (SGX: BTOU), or MUST, has seen its unit price shrivel by 58.5% to close at US$0.112. Both Prime US REIT (SGX: OXMU) and Keppel Pacific Oak US REIT (SGX: CMOU), or KORE, have also fared poorly. The former’s unit price has also plunged by 58.5% year-to-date to US$0.166 while the latter’s unit price has fallen by 34.1% to a near 52-week low of US$0.29. Can these three REITs see the light at the end of the tunnel anytime soon?...
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By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.
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