The Monetary Authority of Singapore is modifying REIT regulations regarding leverage:

The Monetary Authority of Singapore (MAS) said on Nov 28 it will impose a minimum interest coverage ratio (ICR) of 1.5 times to all Reits.

The ICR is a measure of how well a company can repay the interest on its debt.

MAS also said a single aggregate leverage limit of 50 per cent will be applied to all Reits.

Along with this simplification of leverage limits, new disclosure requirements are enacted:

Under these additional rules, Reit managers should do analyses on how changes in their earnings and interest rates can affect their ICR levels, and disclose these studies.