Fortune REIT, Australian Unity Office Fund portfolio values fall amid COVID-19 and other APAC REIT news

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In Hong Kong, Fortune REIT (778) warned shareholders that it expected a net loss for the six months to end-June 2020 after the value of its portfolio fell about 6% amid adverse market conditions and COVID-19.

The REIT said the value of its portfolio as of end-June 2020 was HK$2.5bn lower than the HK$42.82bn recorded at the end of last year. 

“Notwithstanding the above, as Fortune REIT’s portfolio malls are held as long-term investments for stable and recurring income and the above fair value loss is non-cash in nature, there will be no effect on the operating cash flow and income available for distribution of Fortune REIT,” the REIT’s manager said. 

Fortune REIT shares closed 0.72% lower at HK$6.90.

The Hang Seng REIT index declined 0.57% to 5,660.95, while the Hang Seng index retreated 1.84% to 25,727.41. 

The biggest Hong Kong REIT moves of the day were Champion REIT (2778) stocks, which rose 1.18% to HK$4.27, and Prosperity REIT (808), which declined 2.12% to HK$2.31.

Australia

The S&P/ASX 200 A-REIT index edged 0.11% higher to 1,201, as the S&P/ASX 200 index closed down 0.61% at 5,919.20.

Australian Unity Office Fund (AOF) said the book value of its office portfolio fell A$34.6m, or about 4.9%, as a result of an external valuation on June 30. 

The A-REIT also told the market that tenants representing about 11% of the trust’s gross income had inquired about rental relief to date. The trust’s rent collections have averaged 92% during April to June 2020. 

AOF shares jumped 2.51% to A$2.04, in what was one of the biggest A-REIT share price moves of the day, while Vitalharvest Freehold Trust (VTH) shares fell 2.60% to A$0.75. 

Japan

The Tokyo Stock Exchange REIT index finished trading 1.22% lower at 1,664.93, in line with the Nikkei 225 index, which decreased 1.06% to 22,290.81.

The biggest J-REIT swings were Samty Residential Investment Corp. (3459), which finished trading 1.37% higher at JPY 103,800, and Sankei Real Estate Inc. (2972), which declined 3.85% to JPY 99,900. 

The Singapore stock exchange was closed.