The temporary increase in gearing limit will provide M-REITs greater cash flow flexibility and allow M-REIT managers to manage their REIT’s debt and capital structures more efficiently, especially in light of the challenging operating environment during the COVID-19 pandemic.
Notwithstanding the temporary increase in gearing limit, the SC expects managers of M-REITs to consider sustainability of the REIT and best interests of unit holders, before taking on any additional debt.
As the financial system adjusts to the impact of Covid-19, the SC continues to monitor the evolving situation in global and domestic markets, to calibrate its responses and update the public accordingly.
The regulator has already introduced an array of measures to assist capital market participants and the industry. The full list of measures can be found on
www.sc.com.my/covid-19.
