APAC REIT Weekly Tracker: 1-5 June 2020

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Here’s how listed real estate investment trusts (REITs) tracked across Asia Pacific for the week ending Friday, 5 June 2020.

Australia

A-REIT shares recorded a positive week, with the S&P/ASX 200 A-REIT Index finishing the week up 4.66% to 1,301.30.

On Thursday, Charter Hall Group (CHC) and Allianz Real Estate teamed up to purchase a $648m portfolio of ALDI logistics assets located in Sydney, Melbourne and Brisbane, according to an statement.

Dexus (DXS) told the market that its joint venture with Singaporean sovereign wealth fund GIC settled its A$644m acquisition of the Rialto Towers building in Melbourne, Australia in an announcement.

National Storage REIT (NSR) raised A$48m, up from its original A$30m cap, from its security purchase plan, the company said in a filing. The SSP issue, which resulted in more than 30m new stocks, followed the completion of its A$300m institutional placement earlier this week.

Cromwell Property Group (CMW) said in a statement that it was ready to “take advantage of the opportunities that will emerge from market dislocation”, with A$670m of cash and available debt as of end-June. CMW also announced that it would pay a dividend of 1.875 cents per stock for the June 2020 quarter.

On Wednesday, Arena REIT (ARF) raised A$60m through a fully-underwritten institutional placement, up from A$50m due to strong investor interest, the company said.

Ingenia Communities Group (INA) raised A$27.9m through its security purchase plan, above the original target of A$25m, the company said. “With two acquisitions announced on 27 May and further assets under assessment, we are confident of continuing to deploy capital as we identify attractive investment opportunities,” said Ingenia Communities CEO Simon Owen.

On Tuesday, Unibail-Rodamco-Westfield (URW) provided an update to investors, telling them that 65 of its 90 shopping centres had reopened.

Arena REIT (ARF) announced plans to raise A$50m through a fully underwritten institutional placement at an issue price of A$2.28 per new security.

On Tuesday, Vicinity Centres (VCX) completed its A$1.2bn fully underwritten institutional placement.

On Monday, Dexus (DXS) told the market that it expected its 2020 financial year distribution to fall in line with the previous year’s distribution of 50.2 cents per share.

Charter Hall Social Infrastructure REIT (CQE) also  raised A$23.1m through its unit purchase plan, up from A$15m due to investor demand, the company said in a statement.

A-REITs fell in line with the wider market, with the S&P/ASX 200 Index posting a 4.22% weekly gain to 5,998.70.

Japan

J-REITs rose just a 1.09% gain for the week, finishing at 1,719.57, according to the Tokyo Stock Exchange REIT Index.

On Friday, Mitsubishi Estate Logistics REIT Investment Corp. (3481) told the market in a statement that it would join the FTSE EPRA/NAREIT Global Real Estate Index Series from June 19. The REIT said the index was widely adopted by institutional investors as a benchmark for international real estate investments, and expects the move will further broaden its investor base and increase liquidity.

Orix JREIT Inc. (8954) secured JPY 3bn in new debt financing to repay a long-term loan due this month, the company announced. The new financing comprises a 10-year JPY 1bn loan with a 0.45% fixed rate from the Bank of Fukuoka, and a two-year JPY 2bn loan (base rate based on JBA 1-month JPY TIBOR + 0.165%) from Mizuho Bank.

Japan Retail Fund Investment Corp. (8953) closed 1.27% higher to JPY 151,900 after completing its share buyback program, repurchasing more than 15,000 stocks for almost JPY 2m in total between April and June, according to a filing.

On Wednesday, Nomura Real Estate Master Fund Inc. (3462) announced that it had concluded its JPY 40bn commitment line agreement. The unsecured, one-year commitment line has been arranged with lenders MUFG Bank, Sumitomo Mitsui Banking Corp, Mizuho Bank, and Sumitomo Mitsui Trust Bank, according to a statement.

On Monday, Hankyu Hanshin REIT Inc. (8977) acquired an additional part of the site of Takatsuki-Josai Shopping Center in Osaka for JPY 55m, the REIT said.

Industrial & Infrastructure Fund Investment Corp. (3249) also announced that it had completed the purchase of the IIF Atsugi Manufacturing Center for JPY 6.96bn.

Japan’s wider market had a better run this week, with the Nikkei 225 Index up 4.51% to 22,863.73 compared to Monday’s open.

Singapore

The FTSE ST Real Estate Investment Trusts Index climbed 2.84% to 853.76 this week, while the Straits Times Index soared 9.21% over the week to 2,751.50.

On Thursday, BHG Retail REIT (BMGU) announced in a statement that it had terminated its proposed S$455m acquisition of the Badaling Outlets in Beijing due to COVID-19’s impact on the capital markets and the economy. The REIT said cancelling the deal, which was first announced in December last year, wouldn’t have a material adverse impact on its net asset value or distributions for the 2020 financial year.

Lendlease Global REIT (JYEU) said it would be included in the GPR APREA Investable REIT 100 Index later this month, according to an announcement. The move follows the REIT’s inclusion into the MSCI Singapore Index last month.

The manager of Sasseur REIT (CRPU) told the market in a statement on Friday that it had collected its base fees for the first quarter in shares rather than cash, receiving 2,698,964 units at S$0.5926 per stock.

The manager of Lendlease Global REIT (JYEU) also announced that it would take shares instead of cash for its first quarter REIT management and property management fees.

On Tuesday, Starhill Global REIT (P40U) told the market in an announcement that it had priced S$100m of 3.15% notes due 2025, as part of its S$2bn multicurrency debt issuance programme.

United Hampshire US REIT (ODBU) updated investors that it had achieved approximately 82% and 77% of retail tenant base rent collection for the months of April and May 2020, respectively.

On Monday, shares in healthcare trust First REIT (AW9U) plummeted after its former parent company Lippo Karawaci announced plans to initiate lease restructuring discussions with the REIT due to the COVID-19 pandemic. The manager of First REIT said it hadn’t been approached by the tenant yet at the time, according to a filing.

Hong Kong

The Hang Seng REIT Index surged about 9% to 5,725.27 this week, as the Hang Seng Index recovered 5.23% to 24,770.41.

On Monday, Link REIT (823) reported a 6.9% year-on-year increase in net property income to HK$8.22bn in its final results for the year end-March 2020. The company increased its full-year distribution per unit (DPU) by 5.9% YOY to HK287.19 cents.

On Thursday, New Century REIT (1275) shareholders approved the trust’s share buy-back plans at its AGM, the company said in a filing.