SINGAPORE (Aug 17): Singapore Exchange (SGX) and the Singapore Institute of Surveyors and Valuers (SISV) are jointly reviewing valuation practices and the reporting carried out by real estate valuers that listed issuers engage.

Investors rely on real estate valuations when making decisions on investments in REITs and business trusts. Quality valuations are therefore crucial to safeguarding investor interest and maintaining confidence in the REITs and business trust sector. Of particular interest to investors would be the methodologies and principal assumptions adopted in the valuation reports.

“SGX is committed to collaborating with the entire eco-system to improve governance and disclosure. We welcome this opportunity to work with the SISV to review valuation practices and how valuers come up with valuation reports. We believe investors will benefit when valuation reports contain clearer information on methodology and key assumptions,” says Michael Tang, Head of Listing Policy & Product Admission.

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