REITs may be ripe for a relook after beating

Investment tool: People walk towards the Merlion park along Marina Bay in Singapore. Favoured by investors for their dividends, REITs took a beating in 2022 as rising inflation and interest rates dented sentiment in the sector. — AFP

SINGAPORE: Real estate investment trusts (REITs) are looking to make a comeback in 2023 after a torrid 2022, with the pace of interest rate hikes in the United States expected to slow, say analysts.

Favoured by investors for their dividends, REITs took a beating in 2022 as rising inflation and interest rates dented sentiment in the sector. High interest rates make it dearer for REITs, which are debt-intensive, to repay their loans.