MAS proposes to make reits more transparent 

Real estate investment trusts (Reits) may soon have to disclose exactly how much their top executives earn, under proposals unveiled in a consultation paper by the Monetary Authority of Singapore on Thursday, Oct 9, 2014. -- PHOTO: ST FILE
Real estate investment trusts (Reits) may soon have to disclose exactly how much their top executives earn, under proposals unveiled in a consultation paper by the Monetary Authority of Singapore on Thursday, Oct 9, 2014. -- PHOTO: ST FILE

SINGAPORE - Real estate investment trusts (Reits) may soon have to disclose exactly how much their top executives earn.

Reit managers may also face penalties if they act in the interests of their sponsors rather than their investors.

These were some of the proposals the Monetary Authority of Singapore (MAS) unveiled on Thursday in a consultation paper.

The MAS said in a statement that the proposals aim to boost transparency in the $61 billion real estate investment trusts (reits) sector in Singapore and instill greater investor confidence.

One key proposal is to impose a statutory duty upon Reit managers and directors to prioritise investors' interests over those of the Reit manager and sponsor.

This would help to prevent Reits from overpaying for assets bought from their sponsors, for instance.

Reits may also have to change what the Reit manager's performance fee is pegged to, to align it more with investors' long term interests.

Another proposal is to make Reits disclose in their annual report how much income support they get and how much the Reit managers' directors are paid. 

The consultation paper is available on the MAS website. Members of the public can send their feedback to the MAS by Nov 10.