Singapore Relaxes REIT Regulation to Help With Covid-19 Crisis

Market news —

The Monetary Authority of Singapore (MAS) and Singapore's Ministry of Finance have announced several exceptional measures to help the local REITs better cope with the current challenging environment that the Covid-19 pandemic has created.

  • REITs will be granted more time to distribute the 90% of income they are required to pay out, from the current 3 months up to 12 months. This will grant them more flexibility in managing cash flows.

  • Maximum leverage will be increased from the current 45% up to 50%. This was expected to be introduced along with a requirement for a minimum Interest Coverage Ratio of 2.5, but that requirement is now being deferred.