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Asia Pacific REITs Underperformance Against Equities Eases In August, Retail Sector Falls 5.5%

By Jeroen Vreeker, Managing Director, Global Property Research

Sept 4, 2023 – The GPR/APREA Composite REIT Index fell 2.5% in August 2023, suffering a setback in sentiment after the 3.5% gain realised in the previous month. On a positive note, the underperformance of Asia Pacific REITs versus regional equities eased. 

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.

GPR/APREA Composite REIT Index-0.9%-0.1%0.1%-2.5%

Looking at sector performances, Industrial (1.3%) turned out to be the only sector to end the month positively while Retail (-5.5%) recorded the worst performance in August 2023:

GPR/APREA Composite REIT Index-4.7%-3.3%-3.8%1.3%-2.5%n/a-2.6%-5.5%

At country level, Hong Kong (-10.2%) and China (-9.0%) were below average and by far the biggest losers impacted by China’s real estate sparked by the difficulties of China Evergrande Group and other Chinese real estate developers in the wake of new Chinese regulations on these companies’ debt limits.

The best-performing REITs were Digital Core REIT (SGP: 15.2%), BHG Retail REIT (CHN; 12.8%), Goodman Group (AUS; 9.3%), Daiwa Office Investment Corporation (JPN; 6.6%) and United Hampshire US REIT (SGP; 6.6%). The worst performances came from Abacus Group (AUS; -57.2%), Manulife US REIT (SGP; -35.2%), Keppel Pacific Oak US REIT (SGP; -27.8%), Regal REIT (HKG; -23.5%) and OUE Commercial REIT (SGP; -22.8%).