Asia Pacific REITs Extend Positive Momentum, Rising 3.5% in Q3 2019

by Jeroen Vreeker, Global Property Research

Asia Pacific REITs Extend Positive Momentum, Rising 3.5% in Q3 2019

Three IPOs added to GPR/APREA index series in September; retail contracts.

As part of the quarterly rebalancing of the GPR/APREA index series, three recent IPOs — namely India’s Embassy Office Parks REIT and Singapore’s ARA US Hospitality Trust and Eagle Hospitality Trust — entered the GPR/APREA Composite REIT Index.

As a result, the index covered 167 Asia Pacific REITs as at 30 September 2019.

REITs in the region advanced 0.8% in USD terms last month and underperformed equities with the comparable MSCI AC Asia Pacific Index returning 2.7%.

The GPR/APREA Composite REIT Index ended the third quarter 3.5% higher, adding to the first quarter increase of 11.6% and second quarter gain of 5.4%. 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.

	EUR	JPY	LOC	USD
GPR/APREA Composite REIT Index	1.8%	2.6%	1.5%	0.8%

At the sector level, HealthCare (2.2%), Hotel (2.0%), Industrial (2.0%), Office (1.3%), Residential (1.3%) and Diversified (1.1%) advanced in September while Retail (-0.3) was the only sector contracting.

	DIV	HCR	HOT	IND	OFF	OTH	RES	RET
GPR/APREA Composite REIT Index	1.1%	2.2%	2.1%	2.0%	1.3%	n/a	1.3%	-0.3%

The September gain for the GPR/APREA Composite REIT Index was widely supported as all countries except for Australia (-2.4%) advanced. Best performers were Taiwan (4.1%), Thailand (3.4%) and Japan (2.9%). Please find below the performances in USD terms of the GPR/APREA Composite REIT Index and country sub-set indices: