In a flurry of results today, many Singapore REITs reported lower DPUs in their latest Financial Results The reason is simple - due to the rising interest cost these REITs faces. Let's look at Keppel and Mapletree interest rate snapshot of their debt profile. Keppel REIT Below As it can be seen the magnitude of interest rate increase for many Singapore REITs have moved remarkably high. This is due to many of these REITs having hedged their interest rates. It is now only with the expiration of the hedges, do we see the true cost of interest on Singapore REITs. Bearish on Singapore REITs Based at where we are, I expect many Singapore REITs to face an eventual financing cost of 4% per annum. This means many REITs will face falling interest coverage ratio of 2.0-2.5 times. This is not good. Investors in Singapore REITs should prepare to see falling DPU as time passes. Will Reduction in US Interest Rates Help Singapore REITs?...