Tokyo-listed Japan Retail Fund Investment Corp. (8953) has bought a four-storey retail property let to international fashion brand Zara in a busy shopping district in the city of Fukuoka for JPY 5bn.

The property, which has 1,496 sq.m. of lettable space, was acquired at an NOI yield of 4.0%, which is 0.6% higher than its appraisal cap rate of 3.4%.

“The property is an urban retail property located along Tenjin Nishi-dori, the main thoroughfare of the Fukuoka Tenjin area, which is the busiest commercial district in Kyushu,” the REIT said. 

“Due to the heavy pedestrian traffic and its feature of having a broad façade facing Tenjin Nishi-dori, the facility is expected to attract rent demand from a variety of tenants, not only retail stores but also showroom and service facility tenants.” (Read more)

Japan Retail Fund shares closed 1.80% lower at JPY 147,500.

IndexChangeValue at close
S&P/ASX 200 A-REIT+0.15%1,286.50
S&P/ASX 200
FTSE ST REITS +0.11%842.57
Tokyo Stock Exchange REIT
Nikkei 225
Hang Seng REIT -0.13%5,575.61
Hang Seng+0.02%25,491.79

Australia: National Storage REIT snaps up seven assets for A$134m 

ASX-listed National Storage REIT (NSR) has acquired seven new properties for A$134m since July 1, adding 50,400 sq.m. of new lettable area to its portfolio, according to its latest earnings.

The self-storage REIT said its acquisition pipeline had more than A$100m of additional acquisition opportunities under consideration, as well as 15 development and expansion projects underway across Australia and New Zealand. 

For the 12 months to end-June 2020, NSR reported a 16% year-on-year decline to A$121.8m for profit after tax, while underlying earnings rose 9% YOY to A$67.7m. 

Distribution per unit was 3.4 cents per share for the first half, taking DPU to 8.1 cents per share for FY20.

“Despite the combined challenges of significant M&A activity attracted by NSR in FY20 and the COVID-19 pandemic, NSR has delivered another strong result as we continue to execute our growth strategy,” said NSR managing director Andrew Catsoulis. (Read more)

NSR shares closed 0.27% lower at A$1.86.

Hong Kong: New Century REIT cuts distribution after 1H 2020 loss 

Hong Kong-listed New Century REIT (1275) has cut its distribution entirely for the six months to end-June 2020 after reporting a RMB 473.8m loss in 1H 2020. 

The half-year loss comes after the REIT reported a profit of RM7.7m for the same period last year. 

The REIT owns six hotels in China, including the New Century Grand Hotel Hangzhou and New Century Resort Qiandao Lake Hangzhou, with some 2,375 rooms across its portfolio.

Revenue was down 27% year-on-year to RMB 93.4m during the first half, while net asset value per unit sank 23% to RMB 1.7739 compared to the end of 2020. 

“Since March 2020, China gradually lifted confinement restrictions and resumed normal living after the ease up of the Pandemic situation… We believe the Occupancy will resume to normal level in medium term and the room and F&B revenues will continue to improve in the second half of 2020,” the REIT said in its earnings. (Read more)

New Century REIT shares finished trading flat at HK$1.13.

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
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.