Fitch Ratings: Despite global uncertainties, Southeast Asian and Australian REITs are expected to maintain resilience.

Fitch Ratings said in a report that despite global trade uncertainty, real estate investment trusts (REITs) in Southeast Asia and Australia are expected to remain resilient. Fitch stated that rated REITs in these markets may be supported by the quality of their assets and contractual income. The agency noted that these trusts also benefit from longer weighted average lease expiry terms, as well as tenant leases with operational cost pass-through clauses. Fitch indicated that within sub-sectors, demand for logistics and industrial assets is expected to be boosted by increased e-commerce penetration and advanced manufacturing. However, suburban office buildings and commercial parks continue to face pressure from high vacancy rates in an economically uncertain environment. Fitch added that REITs may continue to optimize their portfolios by selling older non-core properties while enhancing existing assets.