Singapore central bank proposes to simplify leverage requirements for REITs

July 25 (Reuters) - Singapore's central bank said on Thursday it proposes to simplify the leverage requirements for all real estate investment trusts (REIT) to a minimum interest coverage ratio (ICR) threshold of 1.5 times and an aggregate leverage limit of 50%.

The current requirement for REITs is to have a minimum ICR of 2.5 times before their aggregate leverage may exceed 45% up to a maximum of 50%.

A stronger ICR indicates stronger financial health, and the company's ability to pay the interest on outstanding debt. (Reporting by Ayushman Ojha; Editing by Jacqueline Wong)