Based on The Edge report, Keppel Pacific Oak US Reit (KORE) management noted that 35% leverage is not viable. Instead, US Reits standard is 40% for decade.
Well, based on Nareit report, US reits leverage (debt to market assets) are below 35% since 2012.
Souce: https://www.reit.com/news/blog/market-commentary/us-public-equity-reits-insulated-mortgage-market-turmoil
This implies that 35% leverage is sustainable.
However, most S-Reits have leverage ratio >35%. More leverage implies more fees and more funding to take on more assets from their sponsors.
Hongkong's Link Reit is internally managed and had kept its leverage ratio below 25%. (5-year leverage ratios are available at here)
While higher leverage may potentially provide higher DPU (when interest rate is low), I would prefer lower leverage ratio to avoid regrets down the road.
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