Potential Fed Rate Hike Remains Major Overhang for Asian REITs -- Market Talk
Dow Jones2026/10/08 07:590759 GMT - The Federal Reserve signaling a potential second interest-rate increase this year remains a major overhang for the Asian real-estate investment trust sector, say DBS Group Research analysts in a note. The first rate hike by the U.S. central bank in over three years last month has placed REITs under pressure. Rising bond yields, higher funding costs for REITs and a hawkish Fed outlook reduces the appeal of REIT distribution yields against risk-free alternatives, they say. However, the sector's fundamentals remain resilient, DBS adds. More defensive REIT subsectors such as healthcare could outperform peers, while industrial REITs with large non-Asian exposure could be subject to more volatility in financing costs and foreign-exchange movements. (megan.cheah@wsj.com) (END) Dow Jones Newswires October 08, 2026 03:59 ET (07:59 GMT)
0759 GMT - The Federal Reserve signaling a potential second interest-rate increase this year remains a major overhang for the Asian real-estate investment trust sector, say DBS Group Research analysts in a note. The first rate hike by the U.S. central bank in over three years last month has placed REITs under pressure. Rising bond yields, higher funding costs for REITs and a hawkish Fed outlook reduces the appeal of REIT distribution yields against risk-free alternatives, they say. However, the sector's fundamentals remain resilient, DBS adds. More defensive REIT subsectors such as healthcare could outperform peers, while industrial REITs with large non-Asian exposure could be subject to more volatility in financing costs and foreign-exchange movements. (megan.cheah@wsj.com)
(END) Dow Jones Newswires
October 08, 2026 03:59 ET (07:59 GMT)
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