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Are Reits out of the woods yet?

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In general, rising interest rates pose more challenges for Reits than for stocks as Reits tend to have lower growth and higher gearing.

Rising interest rates pose more challenges for Reits than for stocks as Reits tend to have lower growth and higher gearing.

PHOTO: CDL HOSPITALITY TRUSTS

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There are still clouds over the real estate investment trust (Reit) sector following a spate of earnings results for the period ending June 30.

Maybank analyst Krishna Guha said there are challenges from having to reprice debt at higher interest rates, while occupancy is up at some properties but not as strong at others.

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