Hotel J-REITs slide on poor RevPAR and more APAC REIT news

Japan

J-REITs reversed recent gains, as the Tokyo Stock Exchange REIT index slumped 1.45% to 1,681.98. The Nikkei 225 Index finished trading 1.22% lower at 22,259.79.

Invincible Investment Corp. (8963) said the RevPAR of its 75 domestic hotels was down 86% year-on-year in May this year due to COVID-19 and the lockdown restrictions, according to a statement

The company has also forecasted an 80% YOY decline in RevPAR for June. The company’s shares tumbled 6.67% to JPY 28,840.

Ichigo Hotel REIT Investment Corp. (3463) also updated the market with its May performance figures, recording an 86.5% YOY decline in RevPAR for May 2020. The REIT’s shares fell 2.18% to JPY 71,700.

Tokyu REIT Inc. (8957) secured two new loans worth JPY 1bn to convert existing debt to long-term interest rates and diversify its repayment debts, according to a filing.

The new loans included an eight-year, JPY 500m loan on a 0.55% interest rate from the Norinchukin Bank, and a seven-year, JPY 500m loan on a 0.4925% interest rate from Mitsui Sumitomo Insurance. Tokyu REIT shares finished trading 0.73% lower at JPY 149,000.

The biggest J-REIT moves were Nippon Prologis REIT Inc. (3283), which rose 1.62% to JPY 313,500, and Invincible Investment Corp. (8963), which sank 6.67%.

Australia

A-REITs retreated, with the S&P/ASX 200 A-REIT index falling 3.76% to 1,232.50, and the S&P/ASX 200 index dropping 2.48% to 5,817.70.

APN Convenience Retail REIT (AQR) told the market in an announcement that shareholder Puma Energy, which owned more than 6.6m AQR shares, had appointed a financial advisor to sell its stake. 

The shares were sold at $3.30 per unit, with APN entities acquiring 3.7% of additional shares, taking its aggregate holdings to 17.3%. AQR shares slid 3.36% to A$3.45.

The biggest A-REIT share price swings were BWP Trust (BWP), which rose 2.55% to A$4.02, and Elanor Retail Property Fund (ERF), which dived 8.50% to A$0.92.

Singapore

The FTSE ST Real Estate Investment Trusts index sank 1.69% to 819.28, as the Straits Times Index closed 1.46% lower at 2,590.15.

Soilbuild Business Space REIT (SV3U) shareholders approved the REIT’s plans to redevelop the 2 Pioneer Sector 1 office, laboratory and warehouse complex in Singapore into a modern ramp-up warehouse. 

The redevelopment will cost S$82.1m and is scheduled for completion in 4Q 2021, however the project could be expanded if Singaporean authorities increase the plot ratio to 1.32. Soilbuild REIT shares closed 1.25% lower at S$0.40.

Among the biggest S-REIT movers of the day were Frasers Logistics & Commercial Trust (BUOU), which gained 0.85% to S$1.18, and BHG Retail REIT (BMGU), which fell 4.69% to S$0.61.

Hong Kong 

The Hong Kong stock market was closed for the Dragon Boat Festival.

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.