bullish

Syfe S-REITs Tracker: Q2 2025 - S-REITs Continue to Deliver Attractive Yields Amid Falling Rates

34 Views10 Jul 2025 12:00
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SUMMARY
  • During Q2 2025, the S-REIT sector benefited from declining interest rates and improved sentiment, which enhanced the relative appeal of REIT dividend yields versus safer assets.
  • The three-month compounded Singapore Overnight Rate Average (SORA) fell from 3.02% in January to about 1.85% by end-July, reflecting easing domestic borrowing costs. While the US Federal Reserve has yet to cut its policy rate in the first half, market expectations of rate relief later in 2025 grew.
  • This backdrop supported S-REIT valuations, as investors anticipated lower financing costs and improved sentiment for yield-oriented investments.
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