APAC REIT Daily: A-REITs jump 4.5% on economic recovery hopes

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Here’s how the real estate investment trust (REIT) markets performed across Asia Pacific on Tuesday, 26 May 2020.

Australia

A-REITs bounced back on growing hopes of an economic recovery, with the S&P/ASX 200 A-REIT Index soaring 4.55% to 1,260.70.

Shares in retail trust Unibail-Rodamco-Westfield (URW) soared 12.71% to A$3.99, while Centuria Office REIT (COF) and Stockland (SGP) both closed more than 7% higher. 

APN Convenience Retail REIT (AQR) stocks jumped 5.76% to A$3.49 after announcing the acquisition of two convenience stores in Inverell, NSW and Gatton, Queensland. The trust bought the two Coles Express stores for A$10.2m, representing a cap rate of 6.5%.

AIMS Property Securities Fund (APW), which is also listed on the Singapore stock exchange, halted its distributions from the June quarter onwards due to market volatility, according to a statement. The company’s shares fell 4.17% to A$1.15.

The S&P/ASX 200 Index also finished trading higher, up 2.93% to 5,780. 

Japan

Hotel REITs soared in Tuesday trading following Prime Minister Shinzo Abe’s decision to lift the state of emergency in Japan. 

Invincible Investment Corp. (8963) stocks shot up 10.52% to JPY 27,000, Mori Trust Hotel REIT Inc. (3478) jumped 4.69% to JPY 100,400, and Hoshino Resorts REIT Inc. (3287) closed 3.92% higher at JPY 450,500.

Shares in Sekisui House REIT Inc. (3309) closed 1.54% higher at JPY 66,000 after the company announced it had arranged JPY 8bn in new loans to refinance its existing borrowings. 

One REIT Inc. (3290) said net income grew 11.5% to JPY 1.89bn during the six months to end-February 2020, according to its latest earnings. The trust predicts net income will decline 1.7% to JPY 1.86bn in the six months to August 2020, but it still expects to provide a distribution of JPY 7,750 per unit. 

One REIT shares edged 0.80% higher to JPY 252,000.

The Tokyo Stock Exchange REIT Index increased 1.20% to 1,664.77, while the Nikkei 225 Index jumped 2.55% to 21,271.17. 

Singapore

Suntec REIT (T82U) shares leaped 4.38% to S$1.43, as Keppel DC REIT (AJBU) climbed 3.81% to S$2.45. 

Ascendas REIT (A17U) stocks closed 3.39% higher at S$3.05, as Mapletree Logistics Trust (M44U) finished trading up 3.28% at S$1.89.

Overall, S-REITs finished trading higher, with the FTSE ST Real Estate Investment Trusts Index up 1.00% to 781.62. The FTSE Straits Times Index closed 0.98% lower at 2,530.30.

Hong Kong 

The Hang Seng REIT Index jumped 2.34% to 5,380.79, as the Hang Seng Index recovered 1.88% to 23,384.66. 

Shares in New Century REIT (1275) jumped 4.17% to HK$1.00 after the Securities and Futures Commission approved deputy chief operating officer Wong Ka Bong’s application to become a responsible officer of the REIT Manager, according to a filing.

Yuexiu REIT (405) stocks rose 3.48% to HK$3.57, while Link REIT (823) increased 2.11% to HK$60.45.

Other markets 

In Malaysia, Al-Salam REIT (5269) stocks jumped 7.14% to MYR 0.75, while Axis REIT (5106) rose 0.51% to MYR 1.99.

Tower REIT (5111) shares declined 3.31% to MYR 0.73 in what was the biggest dip of the day. The FTSE Bursa Malaysia KLCI Index fell 1.06% to 1,436.76. 

In New Zealand, Stride Property Group (SPG) stocks jumped 5.26% to NZ$1.60.