Asia Pacific REITs’ outperformance against equities was limited in July as Hong Kong falls

Contractions were also seen in Singapore, Thailand and Taiwan

By Jeroen Vreeker, Analyst, Global Property Research

There was no change to the constituents of the comprehensive GPR/APREA Composite REIT Index in July. The index continued to cover 164 Asia Pacific REITs as at 31 July 2019. Asia Pacific REITs added 0.9% in USD terms and, as such, outperformed equities with the comparable MSCI AC Asia Pacific Index turning negative at -0.7%. 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 3.2% 1.7% 2.0% 0.9%

At the sector level, performances were: Residential (5.2%), HealthCare (4.0%), Diversified (1.5%), Office (1.4%), Hotel (1.2%), Industrial (0.8%), and Retail (0.0%) all posted gains in July 2019.

DIV HCR HOT IND OFF OTH RES RET
GPR/APREA Composite REIT Index 1.5% 4.0% 1.2% 0.8% 1.4% n/a 5.2% 0.0%

The aggregate gain for the GPR/APREA Composite REIT Index was predominantly attributable to the increases recorded in Japan (3.6%), Malaysia (1.3%), China (0.9%) and Australia (0.6%). At the other end of the spectrum, there were contractions in Taiwan (-0.7%), Singapore (-1.4%), Thailand (-2.8%), and most specifically Hong Kong (-6.0%). Please find below the performances in USD terms of the GPR/APREA Composite REIT Index and country sub-set indices:

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USD-denominated data as per 30 June 2019

W: www.globalpropertyresearch.com