S-REITs: Clarity on Re-financing and Leverage Ratios

MAS gives clarification on gearing limit - Under the MAS Property Fund Guidelines, an S-REIT's total borrowings and deferred payments cannot exceed 35% of its deposited property. This limit can go up to 60% if the REIT obtains a credit rating and publicizes it. MAS has added that REITs are not in breach of the limit if the 60% limit is reached as a result of a fall in asset values.