Fitch: Despite global uncertainties, Southeast Asia and Australia REITs are expected to remain resilient

Fitch stated that rated REITs in these markets may be supported by their asset quality and contractual income. The agency noted that these trusts also benefit from longer weighted average lease maturities and tenant leases with operating cost pass-through clauses. Fitch said that within the sub-sectors, as e-commerce penetration increases and advanced manufacturing develops, logistics and industrial asset occupancy rates should be boosted by demand. However, under economic uncertainty, suburban office buildings and business parks continue to face high vacancy rate pressure. Fitch added that REITs may continue to optimize their portfolios by selling older non-core properties while upgrading existing assets.