Ascendas REIT (A17U), one of Singapore’s largest REITs by market cap, recorded a 2.3% decline in net income to S$240.7m during the first six months of 2020, compared to the same period in 2019.

However, net property income rose 11.2% to S$388m, the company said in its 1H 2020 earnings. 

While the REIT’s total amount available for distribution rose 3.7% to S$263.2m, the company set its distribution at 7.270 cents per share for 1H 2020, down 10.8% from 1H 2019. 

“In the first half of 2020, Ascendas Reit managed to deliver a steady distributable income despite the difficult operating environment, the provision of rent waivers to our tenants due to the COVID-19 pandemic and the absence of one-off distribution of rollover adjustments,” said William Tay, CEO and executive director of Ascendas REIT’s manager.

“We continue to expect challenges in the months ahead which could impact the performance of Ascendas REIT.”

Ascendas REIT shares closed 2.69% higher at S$3.43.

CapitaLand Commercial Trust (C61U) reported a 69.7% decline in net income to S$50.2m during the first half of 2020, compared to the same period last year, according to its earnings.

During the first half period, net property income fell 4.5% to $151.1m and distribution per unit dipped 24.1% to 3.34 cents per security.  

“CCT’s 2Q 2020 results reflected the impact of our portfolio repositioning and rental support for tenants amidst COVID-19,” said Kevin Chee, CEO of the REIT’s manager.

“Retaining and supporting our tenants through the COVID-19 challenges remains a priority for CCT.”

CCT shares closed flat at S$1.76. 

Suntec REIT (T82U)’s net income fell 41.8% to S$63.9m in 1H 2020, while its net property income dived 20.6% to S$90.9m, the company said in its earnings.

The REIT set distribution per unit at 3.293 cents for 1H 2020, down from 4.795 cents in the same period last year.   

“To maintain financial flexibility in view of the evolving COVID-19 situation, the manager has retained 10% of the distributable income from operations and held back its capital distribution in 1H 2020,” said Chong Kee Hiong, CEO of Suntec REIT’s manager. 

“This is to achieve balance between providing a reasonable return to unitholders, building cash reserves as well as assisting our tenants to weather this period.”

Suntec REIT shares closed flat at S$1.42. 

The FTSE ST Real Estate Investment Trusts index finished trading 1.86% higher at 851.35, while the Straits Times Index rose 0.69% to 2,612.35.

The biggest S-REIT moves were Keppel Pacific Oak US REIT (CMOU) shares, which bounced 5.93% to S$0.72, while First REIT (AW9U) closed 4.51% lower at S$0.64. 

Hong Kong 

Link REIT (823) shareholders voted to allow the REIT to buy back shares and broaden its investment scope at its AGM.

The REIT called on shareholders to remove restrictions on the scope of its investment policy in a move that would allow the REIT to invest in all real estate classes. 

The REIT’s manager expects the move to provide greater investment opportunities and potential synergies within mixed-use assets.

Link REIT shares closed 0.84% lower at HK$59.05.

The Hang Seng REIT index dipped 0.41% to 5,426.80, although the Hang Seng index increased 0.82% to 25,263.00.

The biggest swings among Hong Kong REITs were Hui Xian REIT (87001) shares, which fell 3.48% to RMB 1.94, and Prosperity REIT (808), which rose 0.44% to HK$2.30.

Australia

The S&P/ASX 200 A-REIT index jumped 1.97% to 1,250.30, as the S&P/ASX 200 index closed 0.32% higher at 6,094.50.

Vitalharvest Freehold Trust (VTH) shares recorded the biggest fall among A-REITs, dropping 3.23% to A$0.75, while Charter Hall Group (CHC) jumped 4.43% to A$10.37.

In Japan, the Tokyo stock exchange was closed for the Marine Day public holiday.

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.