Hong Kong’s New Century REIT warns of net loss in first half and other APAC REIT news

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Hong Kong-listed New Century REIT (1275) has warned shareholders of a net loss in the range of RMB470m and RMB490m for the first half of 2020 due to COVID-19. 

The profit warning comes after the hotel REIT recorded a RMB 8m net profit during the same period last year. 

The net loss was the result of falling asset values, falling base rents from the suspension of operations, fair value losses of derivative financial instruments, and increased finance costs. 

The REIT expects a net loss in distributable income between RMB 5m to RMB 15m, and told investors that it was unlikely to distribute a dividend for the half-year period. 

The value of its portfolio was also estimated to have fallen by 11.1% to RMB 4.1bn over the six-month period to end-June 2020. (Read more)

New Century REIT shares fell 0.97% to HK$1.02. 

Hong Kong: Link REIT enters UK market with £380m deal

Link REIT (823) entered the UK market with the acquisition of The Cabot office building in London’s Canary Wharf precinct for £380m, representing a 5% gross yield. 

The 17-storey building features 481,605 sq.ft of space, an annual net passing rent of £18.83m and a  weighted average lease expiry (WALE) of 10.9 years. 

“Going beyond our home Hong Kong and Mainland China, we’re looking at opportunities in the UK, Singapore, Australia and Japan – transparent and liquid markets with sound legal frameworks and strong economic fundamentals,” said Link’s CEO George Hongchoy. 

Link said the Cabot had undergone an extensive refurbishment and extension over the six years to March 2020, and was purchased at a 0.4% discount to its July 2020 valuation. (Read more)

Link REIT shares closed 0.60% lower at HK$58.20.

The Hang Seng REIT index inched 0.25% higher to 5,361.66, as the Hang Seng index increased 0.69% to 24,772.76.

Australia: Charter Hall sells 10% stake in Waypoint REIT

Charter Hall Group (CHC) and Charter Hall Long WALE REIT (CLW) have exited Waypoint REIT (WPR) after each selling their entire 5% stakes in the fuel station trust. 

Both REITs sold their holdings at A$2.61 per security, with CHC gaining $101.6m from the sale. 

CHC will also receive a distribution of 7.41 cents per share for the first half of 2020, providing a positive total return on its February 2020 entry price. (Read more)

Shares in Waypoint REIT fell 4.76% to A$2.60. CHC stocks edged 0.39% higher to A$10.25, while CLW shares slipped 1.06% to 4.65.

The S&P/ASX 200 A-REIT index dipped 0.90% to 1,227.30, while the S&P/ASX 200 index closed 0.39% lower at 6,020.50.

Japan: Industrial & Infrastructure Fund buys three assets for JPY 45bn

Industrial & Infrastructure Fund Investment Corp. (3249) has acquired and leased three properties in Fujisawa-shi, Ichihara-shi and Koza-gun for a total of JPY 45.23bn.

The largest acquisition was a 57% interest in the IIF Shonan Health Innovation Park in Fujisawa-shi from Takeda Pharmaceutical for JPY 21.95bn. 

IIF also purchased the IIF Ichihara Manufacturing Center in Ichihara-shi from an unnamed seller for JPY 15,91bn and the IIF Shonan Logistics Center in Koza-gun from Toda Corporation for JPY 7.38bn. (Read more)

Shares in IIF jumped 2.10% to JPY 199,500. 

The Tokyo Stock Exchange REIT index retreated 0.26% to 1,675.92, in line with the Nikkei 225 index, which declined 0.26% to 22,657.38. 

Singapore: Ascott Residence Trust sells assets in China, France for S$191m

Ascott Residence Trust has sold the Ascott Guangzhou in China and the Citadines Didot Montparnasse Paris in France to two unrelated buyers for a combined S$191.4m. 

ART said the Ascott Guangzhou asset sold for RMB 780m, representing 52% above the property’s book value and 81.0% higher than the acquisition price in 2012. 

The trust sold the Citadines Didot Montparnasse Paris for EUR 23.6m, about 69% above the property’s book value and 60.4% higher than the acquisition price in 2010. 

“Despite the COVID-19 situation, the opportunistic sale of Ascott Guangzhou and Citadines Didot Montparnasse Paris at an attractive price allows ART to rejuvenate its portfolio and unlock the strong underlying value of these properties,” said Beh Siew Kim, CEO of the managers of ART.

The FTSE ST Real Estate Investment Trusts index rose 0.87% to 850.17, as the Straits Times Index edged 0.28% higher to 2,582.97.