Low interest rate environment good for REITs

Quality assets: Prime malls and megamalls will recover sooner than neighbourhood malls.

THE low interest rate environment is expected to bode well for local real estate investment trust (REIT) players, due to the lowered required rate of return and borrowing cost.

MIDF Research in a recent report states that while this might be the case in theory, the yield spread is unlikely to remain attractive at the moment.