APAC REIT Daily: REIT stocks extend losses over downturn worries

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Here’s how the REIT markets performed across Asia Pacific on Thursday, 14 May 2020.

Singapore

Stocks in Singapore and other Asia Pacific markets dropped after the US Federal Reserve chairman warned of a long-term economic downturn resulting from the COVID-19 pandemic.

The FTSE Straits Times Index fell 1.94% to 2,522.31, while the FTSE ST REITs Index dropped 2.16% to 739.98.

Prime US REIT (OXMU) stocks dived 5.48% to S$0.69, Keppel Pacific Oak US REIT (CMOU) was down 4.10%, and ARA US Hospitality Trust (XZL) declined 3.95%.

Australia

Investors grew increasingly nervous over the economic fallout of COVID-19, as the S&P/ASX 200 Index fell 1.72% to 5,328.72.

A-REITs followed suit, with S&P/ASX 200 A-REIT Index (XPJ) dropping another 1.05% to 1,120.00.

Shares in shopping centre landlord Unibail-Rodamco-Westfield (URW) dived 7.83% to A$3.65, while Home Consortium (HWC) and Hotel Property Investments (HPI) were both down by more than 5%.

Charter Hall Group (CHC) stocks rose 4.24% to $7.61 after the group reaffirmed its earnings and distribution guidance for FY20, and announced it had A$5bn ready to invest in office, industrial and logistics assets.

National Storage REIT (NSR) shares also closed 4.04% higher at $1.67.

Japan

J-REIT shares finished lower with the TSE REIT index down 1.10% to 1,587.16, led by MCUBS MidCity Investment Corp. (3227), which dropped 6.51% to ¥76,200.

Orix JREIT Inc. (8954) shares extended their losses, falling 6.04% to ¥130,700, just days after announcing new debt financing.

Logistics REITs posted daily gains, led by Nippon Prologis REIT Inc. (3283) shares, which rose 2.55% to ¥305,500.

The Nikkei 225 Index dropped 1.74% to 19,914.78.

Hong Kong

Hong Kong REITs finished lower after the Hang Seng REIT Index dropped 1.87%, and the Hang Seng slid 1.45% to 23,829.74.

Champion REIT (2778) stocks fell 3.82% to HK$4.29, followed by a 2.28% decline in Regal REIT (1881).

Only Hui Xian REIT (87001) shares rose among the HK REITs, edging 0.44% higher to ¥2.28.

Malaysia

Malaysia stocks avoided the sell-off. The FTSE Bursa Malaysia KLCI Index traded sideways, remaining unchanged at 1,397.25

Al-Aqar Healthcare REIT (5116) recorded the largest swing, with shares down 3.55% to RM1.36.

While most Malaysian REITs finished flat or down, Axis REIT (5106) rose 0.50% to RM1.98.

Other markets

In Korea, Shinhan Alpha REIT Co. Ltd. (293940) shares dropped 2.08% to ₩6,120, while Lotte REIT Co. Ltd. (330590) declined 1.72%.

In New Zealand, Kiwi Property Group Ltd. (KPG) stocks closed 2.23% lower at $0.88, as Goodman Property Trust (GMT) finished down 1.55%.