APAC REIT Weekly Tracker: 8-12 June 2020

By Benn Dorrington

Here’s how listed real estate investment trusts (REITs) performed across Asia Pacific for the week ending Friday, 12 June 2020.

Australia

The S&P/ASX 200 A-REIT index fell 3.73% this week, closing at 1,252.70 on Friday, while the S&P/ASX 200 index slipped 2.52% to 5,847.80. 

On Friday, Centuria Industrial REIT (CIP) announced that it was included in the S&P/ASX 200 index, driving its share price up 1.00% to A$3.04. 

ALE Property Group (LEP) told the market in a statement on Thursday that it had reactivated its distribution reinvestment plan for shareholders after suspending it in 2014.

On Tuesday, GPT Group (GPT) said that its retail portfolio valuation fell 8.8%, or A$476.7m, to A$4,297.8m in May compared to December 2019, according to a statement. GPT CEO Bob Johnston said there had been a significant increase in activity at their retail assets in recent weeks, with foot traffic at their regional malls back at 85% of where they were at the same time last year.

Unibail-Rodamco-Westfield (URW) told the market on the same day that it had received a high score in ESG practices from ISS (Institutional Shareholder Services group of companies).

Japan

The Tokyo Stock Exchange REIT index finished the week down 0.17% at 1,716.68, while the Nikkei 225 index sank 2.44% to 22,305.48.

Shares in Industrial & Infrastructure Fund Investment Corp. (3249) surged on Friday after announcing plans to acquire a 3% interest in IIF Shonan Health Innovation Park in Fujisawa-shi for JPY 1.16bn. The asset is one of Takeda Pharmaceutical’s largest research and development facilities in Japan. The sale-leaseback deal with Takeda Pharmaceutical features a 6.5% NOI yield, or a 6.2% yield after additional capex, the company said.

On Thursday, Nippon Accommodations Fund Inc. (3226) secured a JPY 2bn loan from the Norinchukin Bank to refinance an existing long-term loan. The new unsecured financing is due in September 2020 and has a 0.11909% interest rate, according to a filing.

Invincible Investment Corp. (8963) secured a two-year, JPY 1bn from Citibank to repay a tranche of an existing loan due this month, the company said.

Activia Properties Inc. (3279) renewed its JPY 12bn commitment line agreement with Sumitomo Mitsui Trust Bank, Mizuho Bank and MUFG Bank, the company said on Wednesday.

On Tuesday, Premier Investment Corp. (8956) secured two loans totalling JPY 3.2bn to partially fund its Otemachi Financial City Grand Cube acquisition, according to a company statement.

At the start of the week, Japan Real Estate Investment Corp. (8952) announced new debt financing valued at JPY 11bn to refinance some long-term loans. The company secured a JPY 7bn, five-year loan from Sumitomo Mitsui Trust Bank at a 0.2075% interest rate, as well as a JPY 4bn, 10-year loan from MUFG Bank at a 0.36125% interest rate.

Singapore

The FTSE ST Real Estate Investment Trusts index retreated 3.53% this week, finishing at
823.64, while the
Straits Times Index lost 2.43% over the week.

After the markets closed on Friday, Lendlease Global REIT (JYEU) announced it had won a tender to redevelop the 48,200 sq.ft. Grange Road car park site in Singapore into a new multi-functional event space. The S$10m project will expand Lendlease’s 313@somerset complex, growing its net lettable area to approximately 330,000 sq.ft.

On Thursday, Starhill Global REIT (P40U) told shareholders in a statement that its upcoming distribution for the half-year period ending June would be below 90% of taxable income this year due to COVID-19.

Sabana Shariah Compliant Industrial REIT (M1GU) said in a statement that they had collected 96% and 90% of gross rental incomes in April and May 2020, respectively. Sabana stocks closed 1.33% lower at 0.37.

On Monday, Ascott REIT (HMN) shares jumped after announcing its upcoming inclusion into the FTSE EPRA Nareit Global Real Estate Index Series (Global Developed Index) on June 22.

Hong Kong 

The Hang Seng REIT index edged about 0.64% lower over the week to 5,688.73, while the Hang Seng index finished down 1.89% to 24,301.38.

Link REIT (823) secured a five-year sustainability-linked loan of HK$1bn from OCBC Bank, marking its first sustainability-linked loan in Hong Kong dollars, the company said on Thursday.

Earlier this week, Moody’s Investors Service assigned a Baa1 rating to Champion REIT’s proposed USD senior unsecured notes due 2030, as part of its US$2bn medium-term note program.

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
Disclaimer: APAC Real Estate accepts no responsibility for any claim, loss or damage as a result of information provided or its accuracy. Your personal objectives, financial situation or needs have not been taken into consideration. The information provided on this site is general in nature, not financial product advice, so you should see a financial expert before making any investment decision. Conflicts of interest may be present within commercial arrangements with companies and/or stock held.
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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.