Capital Markets, Listed Entities & M&A

Measures to Help S-REITs Manage Cash Flow and Raise Funds Amid COVID-19

On 16 April 2020, the Ministry of Finance, the Inland Revenue Authority of Singapore and the Monetary Authority of Singapore jointly announced the following measures to provide real estate investment trusts listed on the Singapore Exchange Securities Trading Limited ("S-REITs") greater flexibility to manage their cash flows and raise funds, to help them to weather through the COVID-19 pandemic:

• Extending deadline for distribution of taxable income;
• Raising leverage limit; and
• Deferring the implementation of a new minimum interest coverage ratio requirement.

This Update provides a summary of these measures affecting S-REITs.