Mitsubishi Estate L-REIT buys five warehouses for JPY 28bn and other APAC REIT news

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Mitsubishi Estate Logistics REIT Investment Corp. (3481) has acquired interests in five logistics facilities across Japan for a combined JPY 28.4bn. 

The largest deal was a 60% interest in Logicross Nagoya Kasadera, a fully-occupied facility with 37,353 sq.m. of lettable space in Nagoya, Aichi, for JPY 8.7bn. 

In Osaka, the J-REIT bought a 60% interest in the Logicross Osaka facility for JPY 5.8bn and the LOGIPORT Osaka Taisho property for JPY 4.8bn.

The company also acquired the MJ Logipark Sendai 1 property in Tagajo, Miyagi for JPY 7.4bn and the MJ Logipark Kazo 2 asset in Kazo, Saitama for JPY 1.6bn. 

The REIT said the Logicross and Logiport assets were developed by its sponsor Mitsubishi Estate, while the MJ properties were acquired externally. 

Mitsubishi Estate Logistics REIT plans to raise more than JPY 17bn through the sale of shares in a public offering and a secondary offering. (Read more)

Mitsubishi Estate Logistics REIT shares closed flat at JPY 458,000. 

The biggest J-REIT moves were Invesco Office J-REIT Inc. (3298) shares, which jumped 4.63% to JPY 13,320, and Mitsui Fudosan Logistics Park Inc. (3471), which closed 2.14% lower at JPY 549,000.

Index Change Value at close
S&P/ASX 200 A-REIT -0.02% 1,266.40
S&P/ASX 200 -0.67% 6,091.00
FTSE ST REITS +1.31% 841.10
STI +1.28% 2,595.97
Tokyo Stock Exchange REIT +0.78% 1,689.32
Nikkei 225 +1.78% 23,249.61
Hang Seng REIT +0.19% 5,551.24
Hang Seng -0.05% 25,230.67

Australia: Arena REIT grows net profit 29% in FY20

ASX-listed Arena REIT (ARF) shares jumped 5.36% to A$2.36 after reporting a 29% increase in net profit year-on-year to A$76.6m for the 12 months to end-June 2020. 

The REIT, which owns properties in childcare, healthcare and education in Australia, said net operating profit rose 16% YOY to A$43.8m, while setting distribution per unit at 14 cents, up 4% on prior year. 

The value of Arena’s portfolio rose 4.6% YOY to A$914m. 

“Despite ongoing uncertainty, we remain confident in Arena’s strategy, the strength of our portfolio and the important contribution the services we accommodate will make in aiding economic recovery and improving future community outcomes,” said Arena managing director Rob de Vos. (Read more)

Hong Kong: Prosperity REIT records HK$537m loss in 1H 2020

Prosperity REIT (808) made a HK$537.2m loss after tax for the six months to end-June 2020, down significantly on the HK$198.2m profit that it made during the same period last year. 

The REIT recorded a 1.4% year-on-year decline in net property income to HK$181.1m during the first half of 2020, according to its latest earnings. 

The trust set distribution per unit at HK$0.0899 for the period, down 3.6% YOY, while the value of its portfolio slipped 5% to HK$10.6bn as of 30 June. 

“In light of uncertain business outlook due to the resurgence of the pandemic, increasing geopolitical tensions and trade protectionism, office tenants were cautious in lease renewal,” the REIT said. 

“During the reporting period, while the occupancy rate was stable at 96.8% and the average effective unit rent of the portfolio slightly increased to HK$25.10 per sq.ft., Prosperity REIT registered negative rental reversion. 

“Our proactive and flexible leasing strategies, premium quality of our properties, as well as our attentive property management services helped to mitigate the adverse impact brought by market adversity.” (Read more)

Prosperity REIT shares finished trading 2.16% higher at HK$2.37 for the biggest upward swing among Hong Kong REITs, while Fortune REIT (778) closed 0.45% lower at HK$6.69.

Australia: Goodman Group posts 7% fall in net profit for FY20

Goodman Group (GMG) reported a 7.6% year-on-year decline in net profit to A$1.5bn for the 12 months to end-June 2020, according to its latest earnings. 

The warehouse investor and developer recorded a 3% rise in like-for-like net property income, driving property investment income to A$425.2m, in addition to development completions.

The group grew operating profit by 12.5% YOY to A$1.06bn, and set distribution per unit at 30 cents per share for the year.

“The events of the last year have resulted in global changes in behaviour including an acceleration of e-commerce adoption, a shift to remote working and a significant increase in the demand for technology and big data,” said group CEO Greg Goodman.

“We saw development WIP increase by 59% on last year to $6.5 billion and we expect it to exceed $7 billion in the first half of FY21. 

“This development activity is flowing through to our AUM which increased 12% to $51.6 billion in FY20, including $2.9 billion in revaluation gains.” (Read more)

Goodman Group shares finished trading 1.30% higher at A$17.93.