T82U Suntec REIT’s share price has rallied significantly since 31 July 2024, with a 16.1% increase as of 19 September 2024, outperforming the FTSE ST All-Share REIT Index, which rose by 9.8% during the same period. This rise is largely attributed to investor sentiment driven by the anticipation of a Federal Reserve rate cut cycle. Suntec REIT, which holds a higher proportion of floating rate debt, is expected to benefit from the reduction in borrowing costs as rates decline. However, the report cautions that a rebound in the 10-year U.S. Treasury yields, depending on the outcome of the U.S. presidential elections, could pose a risk to this sentiment.
T82U Suntec REIT’s share price has rallied significantly since 31 July 2024, with a 16.1% increase as of 19 September 2024, outperforming the FTSE ST All-Share REIT Index, which rose by 9.8% during the same period. This rise is largely attributed to investor sentiment driven by the anticipation of a Federal Reserve rate cut cycle. Suntec REIT, which holds a higher proportion of floating rate debt, is expected to benefit from the reduction in borrowing costs as rates decline. However, the report cautions that a rebound in the 10-year U.S. Treasury yields, depending on the outcome of the U.S. presidential elections, could pose a risk to this sentiment.