Singapore REITs have $11.6 billion worth of debt (including convertible bonds) maturing from 2010-2012, but this shouldn’t be major concern as some have started refinancing well ahead of maturity, says CLSA, according to Dow Jones.

“Furthermore, faced with a low interest rate environment, any debt refinancing should see a lower average cost of debt for some of the REITs,” says CLSA which notes in aftermath of last year’s financial crisis, S-REITs have turned more prudent in capital management, with long-term gearing targets reduced. “With more prudent capital management and sector gearing, dividend yields will be secure.”

Research house says sector gearing now 32% vs historical average of 30%, peak of 36% reached in 2008. Expects DPU growth to come from yield-accretive acquisitions, lower refinancing costs.

Cites Ascendas REIT (A17U.SG), Mapletree Logistics Trust (M44U.SG), Cambridge Industrial Trust (J91U.SG), CapitaMall Trust (C38U.SG), Frasers Centrepoint (J69U.SG) as favourites.