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Asia Pacific REITs Finished 2.5% Higher in 2023 After 8.3% Rally In December, Retail Scored, Hong Kong Sank

By Jeroen Vreeker, Managing Director at Global Property Research

Jan 3, 2024 – Asia Pacific REITs finished the month on the upside. The GPR/APREA Composite REIT rose 8.3% in December and 2.5% for the 2023 calendar year, respectively. The December 2023 total return performances were representative of the positive momentum with gains ranging from 1.0% for Malaysia to 13.8% for Australia while Singapore (10.0%) also recorded a double-digit win.

Please find below the December performances in USD terms of the GPR/APREA Composite REIT Index and country sub-set indices.

In 2023, all relevant sectors posted gains, led by Retail (11.0%), followed by Healthcare (9.6%), Industrial (9.6%) and Hotel (7.3%):

Looking at performances from an annual perspective, the total return performances realized throughout 2023 for the relevant countries were a mixed bag with losses for Hong Kong (-19.0%), China (-12.8%), Japan (-6.7%) and Thailand (-6.3%). Australia (14.8%) fared much better, followed by Singapore (8.7%) and Malaysia (4.9%). The January-December period saw the regional REITs underperforming general equities (2.5% versus 11.8%).

GPR/APREA Composite REIT Index (2023)6.6%9.6%7.3%8.0%5.9%n/a5.5%11.0%
GPR/APREA Composite REIT Index (Dec) 0.5%-0.5%-2.5%8.9%-2.7%n/a2.1%-2.7%

USD-denominated data as per 31 December 2023.

The GPR/APREA Composite REIT Index covered 181 Asia Pacific REITs with a combined free float market capitalization of USD 276.0bn as of 31 December 2023. Following the latest quarterly rebalancing of the GPR/APREA index series, Nexus Select Trust (India) entered with effect from 18 December 2023.