If US Treasuries go up , global fund managers will gravitate towards them and sell SReits.
However do not dump SReits entirely but treat it with extreme selectivity. Avoid highly leveraged SReits and pivot toward premium institutional grade SReits.
A good example of an SReit that has a high interest coverage ratio (ICR) and a high fixed debt mix is $Keppel DC Reit(AJBU.SI)$ . As a pure play data centre trust, Keppel DC REIT stands as one of the most fundamentally fortified balance sheets on SGX.
The relentless global explosion of AI training, cloud computing gives this SReit significant pricing power during lease renewals.
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- TigerStars·09-18 17:33TOPGreat point on being selective with S-REITs in a higher-for-longer rate environment 👏 Do you think Keppel DC REIT’s data-centre exposure and stronger balance sheet are enough to offset the pressure from elevated global yields?LikeReport
- zuma·08:06thxLikeReport