Hong Kong’s Yuexiu REIT posts RMB 212m loss in 1H20 and other APAC REIT news

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Hong Kong-listed Yuexiu REIT (405) made a RMB 212m loss during the first half of 2020, down from a profit of RMB 730m for the same period last year. 

Net property income fell 10.3% year-on-year to RMB 653.8m at Yuexiu REIT during the six months to end-June 2020, however the REIT still managed to set distribution per unit at RMB 0.0990 per share for the period.  

The REIT, which owns eight properties throughout Guangzhou, Shanghai and Wuhan, said its portfolio decreased 1.04% in value to RMB 34.6bn, compared to its end-2019 valuation.

“It is predicted that the overall market will continue to pick up in the second half of the year but the impact of lagging behind caused by the pandemic will be released continuously,” the REIT noted. (Read more)

Yuexiu REIT shares finished trading up 0.27% to HK$3.72.

Index Change Value at close
S&P/ASX 200 A-REIT -0.41% 1,281.20
S&P/ASX 200 +0.16% 6,126.20
FTSE ST REITS -1.81% 827.34
STI -0.88% 2,519.81
Tokyo Stock Exchange REIT +0.41% 1,746.26
Nikkei 225 -0.35% 23,208.86
Hang Seng REIT -1.15% 5,511.67
Hang Seng -0.83% 25,281.15

Japan: XYMAX REIT buys Osaka supermarket for JPY 1.06bn

Tokyo-listed XYMAX REIT Investment Corp. (3488) has bought a supermarket property in the suburbs of Sakai, Osaka for JPY 1.06bn, reflecting a net operating income yield of 4.8%. 

The two-storey Life Fukuizumi Store is fully-let to Life Corporation, with 3,309 sq.m. of lettable area. 

The REIT said there were about 29,000 people within 1km and 103,000 people within 2km of the store, which was the average level in the suburbs of the three major metropolitan areas.

“Population composition in current trading areas is particularly high for people in their 30s and 40s, followed by people under 10, indicating that the market has many younger families. In addition, the percentage of households with one person is low, and the percentage of households with two or more persons is high, so the location is suitable for this type of grocery supermarkets,” according to XYMAX REIT. (Read more)

XYMAX REIT shares closed 0.34% higher at JPY 88,000.

Australia: Cromwell Property grows profit 13% in FY20 

Sydney-listed Cromwell Property Group (CMW) reported a 13.3% increase year-on-year in net profit to A$181.1m for the 12 months to end-June 2020. 

Operating profit jumped 27% YOY to A$221.2m, while distribution per unit rose 3.4% to 7.50 cents per share for the 2020 financial year.

Assets under management totalled A$11.5bn, while gearing reached 41.6%, rising above the REIT’s target gearing range of 30% – 40%. 

“We have a strong balance sheet with substantial liquidity and rent collection has been resilient for both the domestic Australian portfolio and CPRF during COVID-19 so far,” said Cromwell CEO Paul Weightman.  

“Forty-five per cent of gross passing income is sourced from government entities and our cashflows more than sufficient to service debt. Operating profit will be hard to forecast but we have enough confidence in our strategy to maintain distributions at the current level of 7.50 cps.” (Read more)

Cromwell Property Group shares finished trading 3.28% lower at A$0.89. 

Singapore: Ascendas REIT issues S$100m notes 

SGX-listed Ascendas REIT (A17U) has issued S$100m of its 2.65% notes set to expire in 2030, raising funds to finance and refinance certain green projects. 

The notes have been assigned an ‘A3’ rating by Moody’s Investors Service, and are part of the REIT’s S$7bn Euro medium term securities programme. 

Oversea-Chinese Banking Corporation was appointed sole lead manager, bookrunner and green finance adviser for the notes. 

“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, at the time of the fundraising. (Read more)

Ascendas REIT shares closed 2.08% lower at S$3.30.