Suntec REIT

Suntec REIT - Weakness is pretty much in-line with the entire REIT sector, as the slump continues, as the sector is viewed as potentially one of the most exposed to rising rates. Note that Suntec REIT is one of SGX most heavily geared counter with its leverage ratio at close to 39%. Only K-REIT and MCT has a higher gearing according to Deutsche screen. Hence, any potential rise in rates could potentially result in a drop in higher DPU for REITs which are highly geared.