Why Singapore REITs are not expected to enjoy 'hyper-growth' anytime soon

Are they getting more fragile?

According to Maybank Kim Eng, investors have come to accept that while S-REITs are unlikely to repeat the early hyper-growth years (2002-2007), their business models are not as fragile and unsustainable as predicted by doomsayers. 

REIT managers have witnessed first-hand the dangers of an over-leveraged balance sheet and a lumpy debt maturity profile.

Here's more from Maybank Kim Eng:

As of 30 Jun, most S-REITs (with the exception of four of them – KREIT, MAGIC, MCT, ART) limited their gearing to less than 40% and have taken advantage of the low interest rates to spread out their debt maturities.

Compared to pre-GFC period, S-REITs now have access to a wider range of financing sources, such as multi-currency medium-term notes programmes, the Singapore dollar bond market, retail bonds and even perpetual securities.