APAC REIT Daily: First REIT shares plummet on lease restructuring news

By Benn Dorrington

Here’s how the real estate investment trust (REIT) markets performed across Asia Pacific on Monday, 1 June 2020.

Singapore

Shares in healthcare trust First REIT (AW9U) plummeted 21.47% to S$0.70 today after its former parent company Lippo Karawaci announced plans to initiate lease restructuring discussions with the REIT due to the COVID-19 pandemic. 

The manager of First REIT said it hadn’t been approached by the tenant yet, according to a filing. 

The FTSE ST Real Estate Investment Trusts Index rose 1.14% to 831.22, as the FTSE Straits Times Index jumped 1.83% to 2,556.61.

The largest bounce went to ARA LOGOS Logistics Trust (K2LU) shares, which soared 4.85% to S$0.54, on the back of the trust’s 2019 sustainability report, which was published after the bell on Friday. 

Hong Kong

In Hong Kong, the Hang Seng REIT Index climbed 3.13% to 5,418.51, in line with the Hang Seng Index, which soared 3.36% to 23,732.52.

Link REIT (823) stocks advanced 5.78% to HK$61.30 after reporting a 6.9% year-on-year increase in net property income to HK$8.22bn in its final results for the year end-March 2020.

The company increased its full-year distribution per unit (DPU) by 5.9% YOY to HK287.19 cents. 

New Century REIT (1275) shares rose 5.26% to HK$1.00, followed by Champion REIT (2778), up 3.99% to HK$3.65. All of Hong Kong’s REIT closed higher. 

Australia

The S&P/ASX 200 A-REIT Index dipped 0.49% to 1,237.30, while the S&P/ASX 200 Index rose 1.10% to 5,819.20. 

Shares in retail REIT Vicinity Centres (VCX) halted trading after the company announced plans to raise A$1.2bn through a fully-underwritten institutional placement, as well as a further A$200m through a non-underwritten security purchase plan. 

Dexus (DXS) shares jumped 2% to A$9.18 after the REIT told the market it expected its 2020 financial year distribution to fall in line with the previous year’s distribution of 50.2 cents per share. 

Charter Hall Social Infrastructure REIT (CQE) raised A$23.1m through its unit purchase plan, up from A$15m due to investor demand, the company said in a statement. The REIT’s shares closed 2.00% lower at A$2.45.

The biggest movers today were Waypoint REIT, which rose 3.39% to A$2.44, and Elanor Retail Property Fund (ERF), which finished trading down 5.19% at A$0.73.

Japan

The Tokyo Stock Exchange REIT Index finished trading 1.71% lower at 1,671.93, while the Nikkei 225 Index edged 0.84% higher to 22,062.39.

Hankyu Hanshin REIT Inc. (8977) acquired an additional part of the site of Takatsuki-Josai Shopping Center in Osaka for JPY 55m, according to an announcement. Hankyu shares declined 2.50% to JPY 132,700. 

Shares in Industrial & Infrastructure Fund Investment Corp. (3249) fell 2.94% to JPY 171,500 after announcing it had completed the purchase of the IIF Atsugi Manufacturing Center for JPY 6.96bn.

Mitsubishi Corp.- UBS Realty Inc., the asset manager of Japan Retail Fund Investment Corp. (8953), Industrial & Infrastructure Fund Investment Corp. and MCUBS MidCity Investment Corp. (3227), introduced an employees’ investment unit ownership plan for each REIT. 

Marimo Regional Revitalization REIT Inc. (3470) shares rose 0.83% to JPY 109,000 in what was the biggest gain of the day, while Invincible Investment Corp. (8963) stocks sank 3.78% to JPY 26,250.

Learn more about Asia Pacific REITs:

REITS in AustraliaREITs in Thailand
REITs in JapanREITs in Taiwan
REITs in SingaporeREITs in Korea
REITs in Hong KongREITs in New Zealand
REITs in MalaysiaREITs in India
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Benn is a freelance journalist and the publisher of APAC Real Estate. He has reported for the Herald Sun, REFI Europe, S&P Global Market Intelligence, Leader Newspapers, and more.