Stocks to watch: S-Reits, Asian Pay Television Trust, Rex, SIIC Environment, Food Empire
24 Feb9:25 AM
INCOME-TAX and GST (Goods and Services Tax) concessions for Singapore’s real estate investment trusts (Reits) will be extended for five more years, but stamp-duty concessions for the purchase of local properties will be allowed to lapse after March this year, said Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam on Monday.
Most of the industry flagged these as positive moves to keep the Singapore Reit market competitive relative to its Asian counterparts, but said the removal of the stamp-duty concession will increase the costs of acquiring local assets. This may consequently slow their pace of acquisitions and cause yields to dip.
Mapletree Industrial Trust, Viva Industrial Trust, Mapletree Commercial Trust, Frasers Centrepoint Trust, CapitaMall Trust and CapitaCommercial Trust are among Reits with wholly local assets.