Singapore’s Ascendas REIT raises S$100m from green bond issue and other APAC REIT news

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Ascendas REIT (A17U) has raised S$100m through its first green bond, as part of its S$7bn Euro Medium Term Securities Programme. 

The orderbook for the 10-year bond, which has a fixed coupon rate of 2.65%, exceeded S$650m, with orders from across 47 accounts. 

Asset managers, insurance companies and hedge funds accounted for 80% of the allocated green bonds, while banks and corporates received 11%, and private banking accounts received 9%. 

OCBC Bank was the sole lead manager, bookrunner and green finance adviser.

“The proceeds from our green bonds or loans will allow us to finance green projects that mitigate climate change by reducing greenhouse gas emissions, improving energy efficiency, reducing water consumption or having other positive environmental impact,” said William Tay, CEO and executive director of the REIT’s manager. (Read more)

Ascendas REIT shares closed 0.29% lower at S$3.40.

Index Change Value at close
S&P/ASX 200 A-REIT +0.23% 1,262.30
S&P/ASX 200 +0.77% 6,123.40
FTSE ST REITS -0.15% 837.61
STI -0.33% 2,563.09
Tokyo Stock Exchange REIT +1.15% 1,708.72
Nikkei 225 -0.20% 23,051.08
Hang Seng REIT -0.43% 5,563.39
Hang Seng +0.08% 25,367.38

Australia: Abacus Property posts 3.6% FFO decline amid portfolio repositioning   

ASX-listed Abacus Property Group (ABP) reported a 3.6% year-on-year decline in funds from operations (FFO) to A$124.6m during the 2020 financial year, as the REIT continued to reposition its portfolio. 

Net profit fell 58% YOY to A$84.7m during the 12 months to end-June 2020, while the group set its distribution per share at 18.50 cents. 

The REIT invested A$820m into the office and self storage sectors during the year, including a A$311m North Sydney office deal and A$190m of self storage acquisitions. 

“Following a pivotal year of capital deployment into our key sectors of office and self storage, Abacus is positioned as a strong asset backed, annuity style investment house focused on the ownership and management of our assets,” said Abacus Property Group managing director Steven Sewell. 

“A combination of established and new collaborative joint ventures has created enduring investment opportunities and facilitated our capital recycling program.” (Read more)

Abacus Property shares finished trading flat at A$2.63. 

Japan: Nippon Building Fund weathers COVID-19 storm in 1H 2020

Tokyo-listed Nippon Building Fund Inc. (8951) recorded a 0.9% decline in operating income to JPY 16.7bn for the six months to end-June 2020.

Operating revenues were down 1.4% to JPY 38.6bn and net income slipped 0.2% to JPY 15.5bn during the first half. 

The J-REIT set its distribution per unit (DPU) at JPY 10,986 per share, down from JPY 11,011 in the prior period. 

Nippon Building Fund has forecast operating income to increase 6.4% to JPY 17.8bn in the next reporting period, while net income is predicted to rise 7% to JPY 16.6bn. 

In the office leasing market, the REIT said there were delays in delays in movements for relocation and conclusion of contracts, as well as increases in vacancy rates associated with the downsizing of offices.

“In the office building trading market, severe competition for acquisition of properties is expected to continue as the appetite for property acquisition of domestic and international investors remains high and information on sales of prime properties is limited,” the company said. (Read more)

Nippon Building Fund shares finished trading 2.71% higher at JPY 607,000.

Hong Kong: CMC REIT reports RMB 138.7m in net income for 1H 2020

China Merchants Commercial (CMC) REIT reported RMB 138.7m in net property income during the first half of 2020 after listing on the Hong Kong stock exchange in December last year. 

The REIT recorded RMB 45.6m in profit after tax and RMB 177.9m in revenue for the six months to end-June 2020, according to its earnings.

CMC set its distribution per unit at HK$0.0809 per share, while its debt to total asset value finished the period at 26.8%. 

The trust owns five office and retail properties in Shenzhen, including the New Times Plaza and the Garden City Shopping Centre.

“The REIT Manager is still optimistic about the CMC REIT’s medium to long-term growth prospects and will make use of the resource advantages of the China Merchant Group, low financing costs and professional property and investment management to fully capitalize on all kinds of growth opportunities,” the company said. (Read more)

CMC REIT shares closed 0.72% lower at HK$2.74.