APAC REIT Daily: Link REIT secures HK$1bn sustainability loan, as REIT shares tumble

By Benn Dorrington

Here’s how listed real estate investment trusts (REITs) performed across Asia Pacific on Thursday, 11 June 2020.

Hong Kong 

Link REIT (823) secured a five-year sustainability-linked loan of HK$1bn from OCBC Bank, marking its first sustainability-linked loan in Hong Kong dollars, the company announced. 

The REIT will use the loan for general working capital, and could receive interest rate reductions based on its ESG performance. 

Link’s share price closed 1.52% lower to HK$68.250, as the Hang Seng Index tumbled 2.27% to 24,480.15.

All of Hong Kong’s REITs finished trading lower, with the Hang Seng REIT Index slipping 2.18% to 5,725.45.

Australia

The S&P/ASX 200 A-REIT Index slumped 3.22% to 1,275.60, while the S&P/ASX 200 Index sank 3.05% to 5,960.60.

ALE Property Group (LEP) reactivated its distribution reinvestment plan for shareholders after suspending it in 2014, according to a statement. The company’s shares fell 2.81% to A$4.85.

A handful of A-REIT stocks finished trading higher, led by Qualitas REI Fund (QRI) which rose 3.81%. 

Retail REITs suffered the most, with Unibail-Rodamco-Westfield (URW) and Scentre Group (SCG) shares down 9.76% and 8.05%.

Japan

The Tokyo Stock Exchange REIT Index fell 3.00% to 1,708.60, as the Nikkei 225 Index retreated 2.82% to 22,472.91.

Nippon Accommodations Fund Inc. (3226) edged 0.32% higher to JPY 627,000 after arranging a JPY 2bn loan from the Norinchukin Bank to refinance an existing long-term loan. 

The new unsecured financing is due in September 2020 and has a 0.11909% interest rate, according to a filing.

Invincible Investment Corp. (8963) secured a two-year, JPY 1bn from Citibank to repay a tranche of an existing loan due this month, the company said. Invincible shares sank 5.77% to JPY 32,650. 

Mitsui Fudosan Logistics Park Inc. (3471) stocks posted the highest gains, up 1.60% to JPY 445,000, while United Urban Investment Corp. (8960) was among the hardest hit, down 6.88% to JPY 128,500.

Singapore

The FTSE ST Real Estate Investment Trusts Index dived 4.40% to 833.58, as the Straits Times Index sank 3.44% to 2,704.21.

After the bell yesterday, Sabana Shariah Compliant Industrial REIT (M1GU) told the market in a statement that they had collected 96% and 90% of gross rental incomes in April and May 2020, respectively. Sabana stocks closed 1.33% lower at 0.37.

Among the biggest movers were CDL Hospitality Trust (J85) shares, which dived 8.20% to S$1.12, and ESR-REIT (J91U) stocks which fell 8.14% to S$0.40.

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.