Just my fact finding. Currently there are no known reported news of new big tenants vacating either Prime or Keppel Pacific Oak REIT properties.
The selldown is likely a recalibration of the equity risk premieum investors are demanding for such REITs. Worth noting UtdHampshire US REIT faced a similar selldown where share prices moved down 10%.
All in all, the past week's selldown is a technical movement with no bearing on fundamentals. The news of "higher interest for longer" has been known for a while in the market, hence there should be no reson the repricing has only happened as of now. Nevertheless, those who traded on REITs and especially on US REITs, by betting short, is unlikely to profit and will be making losses given this is a technical price movement with no fundamentals.
The fundamental is requirement for premium over the risk-free returns rate. With safe US interest rates easily 5% and above, US REITs need higher yield % to compete and that higher yield can only come from lowering of share prices.
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