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Asia Pacific Industrial and Hotel REITs Up Sharply in May

Asia Pacific Industrial and Hotel REITs Up Sharply in May

Asia Pacific REITs were up 4.8% in May 2020, adding onto the 7.3% gain realised in the preceding month. Looking at sector performances, the industrial sector gained the most, up 10.2% in the month. Hotel was next with a 9.3% increase. Residential was up 8.5%, retail gained 1% and healthcare climbed 4.3%.

While the industrial sector continues to see demand due to a more prominent e-commerce trend during the lockdown period in most regions, some hotels in Asia Pacific have also started to re-open. Marriott, for instance, has opened all of its 350 hotels across China, although occupancy remains low at around 40%.

In the region, REITs managed to outperform equities that added 1.9% in April 2020. Fresh unrest began taking its toll on Hong Kong REITs (-13.6%) after a proposal to consider a new security law for the territory was introduced by the Chinese government. The proposed constitutional amendments were considered an assault on the territory’s freedom, sending thousands of protestors back onto the streets of Hong Kong. China (-5.9%) was down as well. Other countries realised gains ranging from 1.3% for Taiwan to 7.6% for Thailand.

The table below shows the total return performances realised in the previous month for the various currencies available for the GPR/APREA Composite REIT Index.

Given an unchanged composition, the comprehensive GPR/APREA Composite REIT Index continued to cover 168 Asia Pacific REITs with a combined free float market capitalisation of USD 259.1 bn as at 29 May 2020.

Global Property Research
Jeroen Vreeker
T: +31 (20) 348.84.51