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Singapore’s securities regulator has proposed tighter disclosure requirements for real estate investment trusts and business trusts listed on the local exchange, part of a broader review aimed at strengthening transparency around related-party transactions and leverage levels.
Proposed Changes
Under the draft framework, listed trusts would face expanded reporting obligations covering interested-party transactions, gearing ratios, and valuation methodologies used for property assets. The proposals, released for public consultation, would also require more frequent disclosure of refinancing risk given the sector’s sensitivity to interest-rate movements. Industry groups said the changes reflect regulators’ ongoing focus on the trust sector following a period of elevated borrowing costs that pressured some smaller vehicles’ balance sheets.
Industry Reaction
Trust managers broadly welcomed the consultation process, though some cautioned that expanded reporting requirements could add compliance costs, particularly for smaller and mid-sized trusts. Shares of several Singapore-listed trusts were little changed following the announcement, with analysts noting the proposals were largely in line with market expectations after months of informal signaling from regulators.
The consultation period is expected to run for several weeks, with the national securities regulator inviting feedback from trust managers, institutional investors, and industry associations before finalizing any new rules. Market participants said the review underscores Singapore’s positioning as a regional hub for real estate and infrastructure trusts, with regulators keen to maintain investor confidence following recent volatility in global property markets.