OREANDA-NEWS. The Singapore industrial real estate investment trust (REITs) sector will remain resilient in the current economic slowdown due to their robust financial profiles, Fitch Ratings says in a new report.

We expect rental rates on Singapore industrial property to remain under pressure in 3Q15, as falling demand meets increasing supply across all industrial asset types. There is more pressure on rents of lower-specification industrial properties because of weaker demand and higher supply, while higher-specification properties are less affected as demand remains stable. REITs with a higher proportion of near-term lease renewals and a greater proportion of low-specification assets are at higher risk.

The sector's loan-to-value ratio and interest coverage ratio remain robust. The large proportion (80% at end-1H15) of the sector's debt with fixed rates, as well as the narrow mismatch between the duration of the sector's lease and debt contracts, also underpin the sector's resilience in a downturn.

The dashboard style report titled "Singapore Industrial REIT Dashboard 3Q15" is available at www.fitchratings.com, or by clicking on the link in this media release.