APAC REIT Daily: Nippon Building Fund shares rise, as J-REITs edge higher

By Benn Dorrington

Here’s how the real estate investment trust (REIT) markets performed across Asia Pacific on Wednesday, 27 May 2020.

Japan

J-REITs finished trading slightly higher, with the Tokyo Stock Exchange REIT Index edging 0.75% higher to 1,677.21, in line with the Nikkei 225 Index, up 0.70% at 21,419.23.

Nippon Building Fund Inc. (8951) received a JPY 1bn unsecured loan from Taiyo Life Insurance to refinance a long-term borrowing, the company said in a statement. The loan had a 0.65% interest rate and was due in 2035. The company’s shares jumped 2.72% to JPY 642,000.

Shares in Nippon Accommodations Fund Inc. (3226) closed 2.22% higher at JPY 644,000 after the company announced a new JPY 1bn unsecured loan from Sumitomo Mitsui Trust Bank to repay an existing short-term debt. The unguaranteed loan offered a 0.09409% coupon rate and was set to mature end-August 2020. 

Ichigo Hotel REIT Investment Corp. (3463) stocks jumped the highest, up 7.18% to JPY 65,700, while Activia Properties Inc. (3279) shares dipped 1.56% to JPY 378,000.

Australia

A-REITs extended their gains, with the S&P/ASX 200 A-REIT Index rising 1.23% to 1,276.20, while the S&P/ASX 200 Index dipped 0.09% to 5,775.

ALE Property Group (LEP) announced it had redeemed A$225m of Australian medium term notes that were due to mature in August with a new debt facility arranged last month, according to a statement. ALE stocks rose 0.89% to A$4.52. 

Shares in Ingenia Communities Group (INA) climbed 0.98% to A$4.12 after the company exchanged contracts on two acquisitions in NSW and Victoria totalling about A$33m. In a statement, the company said it still had A$352m of cash and available debt ready for further deals this year.

The biggest swings were Unibail-Rodamco-Westfield (URW) stocks, which ascended 9.02% to A$4.35, and Elanor Commercial Property Fund (ECF), which fell 4.15% to A$0.93. 

Singapore

S-REITs traded sideways, with the FTSE ST Real Estate Investment Trusts Index edging up 0.05% to 782.39.

Prime US REIT (OXMU) announced that its manager received 80% of its base fee for the three months to end-March 2020 in shares, according to a statement. The manager received 2,386,703 stocks valued at  US$0.602 per unit. The REIT’s shares jumped 2.17% to S$0.71.

Shares in Suntec REIT (T82U) closed 1.40% lower at S$1.41 after announcing it would issue S$200m of 2.6% notes due in 2025 on to the bonds market.

The FTSE Straits Times Index finished trading 0.43% lower at 2,519.48. 

Hong Kong 

Hong Kong REITs and the wider market closed lower over rising fears of protests in the city.

The Hang Seng REIT Index sank 2.61% to 5,240.39, and the Hang Seng Index slipped 0.36% to 23,301.36.

Spring REIT (1426) shares dived 5.22% to HK$2.36, while Link REIT (823) dipped 2.73% to HK$58.80. 

Other markets 

In Malaysia, the greatest changes were Pavilion REIT (5212) shares, which increased 1.79% to MYR 1.71, and Al-Salam REIT (5269) stocks that dipped 2.67% to MYR 0.73.

In New Zealand, Property for Industry Ltd (PFI) shares were up 2.45% to NZ$2.51, while Stride Property Group (SPG) rose 1.87% to NZ$1.63.

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.