Will a looming recession in the US shake S-REITs?

The US yield curve—an indicator of recession—has been inverted since 1 April.

The last time Singapore saw an inverted yield curve, Singapore real estate investment trusts (S-REITs) started to underperform and the country eventually fell into recession. During the Global Financial Crisis, S-REITs corrected 56.4% and underperformed by 18.4% during the two years after the yield curve started to invert.

This is why red flags have been raised amidst the inversion of the U.S. yield curve since 1 April.

As an inverted yield curve has been a reliable indicator of recession, experts believe that the US and the global economy might fall into a slump.

UOB Kay Hian, however, allayed fears of S-REITs, saying the slope of the yield curve in Singapore remains upward sloping, with the 10Y-2Y term spread staying marginally positive at 0.5%.

The analyst added that REITs, particularly retail and hospitality, will continue to benefit from Singapore’s easing of COVID-19 measures.

Among S-REITs, UOB Kay Hian said the best to invest in would be Ascott Residence Trust (ART SP), Frasers Centrepoint Trust (FCT SP), Mapletree Commercial Trust (MCT SP), and Mapletree Industrial Trust (MINT SP).

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!


4 measures investors and businesses must be aware of in 2024
One of the measures will screen investments in entities critical to Singapore’s national security.
UOB deploys AI tools to level up employees’ productivity
The bank with the largest consumer footprint in ASEAN leads the way in adopting Microsoft’s Copilot for more collaborative and productive banking.