APAC REIT Daily: Kenedix Office REIT posts ordinary income gains, as REIT stocks sink

By Benn Dorrington

Here’s how listed real estate investment trusts (REITs) performed across Asia Pacific on Monday, 15 June 2020.  

Japan

The Tokyo Stock Exchange REIT Index dived 4.72% to 1,635.73, while the Nikkei 225 Index lost 3.47%, falling 774.53 points to 21,530.95.

Kenedix Office Investment Corp. (8972) reported a 5.7% increase in ordinary income to JPY 6.18bn during the six-months to April 2020, the company said. However, the REIT expects ordinary income to grow just 0.6% to JPY 6.21bn in the next half-year period. The trust’s stocks closed 5.23% lower at JPY 580,000.

Ichigo Office REIT Investment Corp. (8975) reported recurring profit growth of 0.6% to JPY 3.58bn for the six months to end-April 2020, according to its latest earnings. The REIT projected a 12.7% drop in recurring profit to JPY 3.12bn for the October 2020 period. The company’s shares fell 3.28% to JPY 73,800. 

Shares in Sekisui House REIT Inc. (3309) declined 4.65% to JPY 67,600 after the company reported a 5.6% decrease in ordinary income to JPY 6.99bn for the half-year period to April 2020. In its earnings, Sekisui predicts a further 1.5% decline in ordinary income to JPY 6.89bn for the six months to end-October 2020.  

Singapore

In Singapore, the FTSE ST Real Estate Investment Trusts Index slipped 0.83% to 816.83, as the FTSE Straits Times Index retreated 2.64% to 2,613.88. 

CapitaLand Mall Trust (C38U) said that it would grant rental waivers for June 2020, and expected to offer an additional month of rental relief for businesses continuing to face restrictions, according to a statement.

After the bell, Mapletree Logistics Trust (M44U) announced the purchase of a second logistics facility in Brisbane for A$21.25m, according to an announcement. The deal expands MLT’s footprint in Australia to eleven assets spanning 277,115 sq.m. of combined gross floor area. 

Hong Kong 

The Hang Seng REIT Index sank 1.59% to 5,598.47, and the Hang Seng Index decreased 2.16% to 23,776.95. 

Champion REIT (2778) issued US$300m of 2.95% notes due 2030, as part of its HK$2bn guaranteed medium term note programme, according to a filing.

Australia

The S&P/ASX 200 A-REIT Index dipped 2.19% to 1,225.30, while the S&P/ASX 200 Index fell 2.19% to 5,719.80. 

US Masters Residential Property Fund (URF) updated the market on its interest and dividend payments, committing to paying the interest on its URG notes III and the distribution on its URF convertible step-up preference units. The fund’s share price sank 8.80% to A$0.28.

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.