minor edits  to make it clearer.
Rule of Thumb

📊 Yield Scenario Table

✅ Interpretation

• Below 80¢ : Yield shoots above 8.5&ndash 9.8%, offering a very wide premium over Treasuries. Attractive, but signals market stress if price falls that low.
• 80&ndash 88¢ : Balanced zone &mdash yield ~7.8&ndash 8.6%, still comfortably above Treasuries.
• 90¢ &ndash $1: Yield compresses to 6.9&ndash 7.6%, narrowing the spread. Still positive, but less compelling versus risk‑ free bonds.

📊 Calibration Example (UI Boustead REIT)

• Projected REIT Yield: ~7.8% at IPO price (S$0.88).
• Current Treasury Yield: 4.4%.
• Spread: 3.4% &rarr still attractive, but not excessive.

🔑 Rule of Thumb

• Treasury &le 3%: REITs yielding 6&ndash 7% look very attractive (spread 3&ndash 4%).
• Treasury ~4&ndash 4.5%: REITs need to yield at least 7.5&ndash 8% to stay compelling.
• Treasury &ge 5%: REITs must push yields above 8.5&ndash 9% to maintain appeal, otherwise investors may rotate into bonds.

✅ Takeaway

• At 7.8% yield, it remains attractive as long as Treasuries stay below ~4.5%.
• If Treasuries rise toward 5%, the REIT would need to trade lower (say ~80¢ , giving ~8.6% yield) to preserve a healthy spread.