Japan’s IIF set to raise JPY 34bn through public offering and other APAC REIT news

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Japan’s Industrial & Infrastructure Fund Investment Corp. (3249) is undertaking a new public offering to raise more than JPY 34bn to support its acquisition of a stake in the IIF Shonan Health Innovation Park.

IIF plans to offer 181,000 new units at JPY 182,845 per security, reflecting a 3% discount to its August 4 share price, in a bid to raise just over JPY 33bn. 

The J-REIT has also arranged a secondary offering of 9,000 units through an over-allotment, collecting an additional JPY 1.65bn.

The company said 61,750 of the new units would be sold to investors in overseas markets including Europe and Asia, but excluding Canada and the US. (Read more)

IIF shares closed 3.28% lower at JPY 188,500.

Index Change Value at close
S&P/ASX 200 A-REIT +2.26% 1,236
S&P/ASX 200 +1.88% 6,037.60
FTSE ST REITS +1.38% 843.34
STI +1.24% 2,515.70
Tokyo Stock Exchange REIT +1.57% 1,686.85
Nikkei 225 +1.70% 22,573.66
Hang Seng REIT +0.47% 5,460.45
Hang Seng +2.00% 24,946.63

Australia: BWP increases full year DPU 1% 

ASX-listed BWP Trust (BWP) reported a final distribution of 9.27 cents, taking its full-year ordinary distribution to 18.29 cents, up 1% on the previous year. 

The trust, which owns a portfolio of Bunnings hardware stores and other retail properties, grew like-for-like rental growth by 2.4% over the 12 month period, according to its full year earnings. 

BWP said the value of its portfolio increased 4% year-on-year to A$93.6m due to the attractiveness of Bunnings properties to investors. 

“Throughout the financial year, Bunnings has been able to operate on an unrestricted basis from all the properties leased from the Trust, as have the significant majority of the trust’s other tenants,” the company said. 

“For the 2020/21 financial year, the trust’s primary focus is on filling any vacancies in the portfolio, progressing store upgrades, extending existing leases with Bunnings through the exercise of options, completion of market rent reviews, and the continued rollout of energy efficiency improvements at its properties.” (Read more)

BWP Trust shares jumped 3.92% to A$3.98.

Hong Kong: Hui Xian REIT shares tumble 13% after DPU cut

Hong Kong-listed Hui Xian REIT (87001) shares tumbled 13.13% to RMB 1.72 on Tuesday after the trust cut its distribution per unit 83% YOY to RMB 0.0212 for the first half of 2020. 

The company recorded a loss after tax of RMB 1.6bn in 1H compared to the RMB 426m profit during the same period last year, while net property income fell 27.9% year-on-year to RMB 751m in 1H.

Hui Xian REIT, which owns the Beijing Oriental Plaza and the Chongqing Metropolitan Oriental Plaza, said the value of its portfolio fell to RMB 30.8bn from RMB 32.9bn six months earlier. 

“With the easing of COVID-19 in China, our business is expected to see some improvement and the pandemic impact on the second half of 2020 will be less severe,” the company said.

In Singapore, the biggest REIT swings were United Hampshire US REIT shares, which closed 3.64% lower at S$0.53, and First REIT (AW9U) stocks, which climbed 4.46% to S$0.59.