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Asia Pacific REITs Plummet 13.8% In Q2

Asia Pacific REITs Plummet 13.8% In Q2

All sectors recorded declines during the month and for the quarter with industrial sector the worst-performing

By Jeroen Vreeker, Managing Director at Global Property Research

July 6, 2022 – Asia Pacific REITs continued to slide in the second quarter of 2022, with the GPR/APREA Composite REIT Index recording a double-digit loss of 13.8% following negative returns in April 2022 (-4.8%), May 2022 (-1.6%) and June 2022 (-8.0%) respectively.

Among markets, Australia turned out to be worst performer with a 22.8% decline,  followed by Japan (-11.6%) and Thailand (-11.2%). No gains were recorded in the region during the month. 

GPR/APREA Composite REIT Index also underperformed regional equities in June, posting an -8 decline versus equities’ -6.3% during the month. The trend was sustained in the second quarter where the REIT Index lost -13.8% versus equities’ -11.8%. 

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

GPR/APREA Composite REIT Index-5.7%-2.8%-4.5%-8.0%

GPR/APREA Composite REIT Index-8.3%-3.5%-7.0%-13.8%

There was also little refuge to be found in sectors, with probably only Hotel managing to somewhat limit the benchmark’s losses in both the month and quarter. For both the month and the quarter’s data, the Industrial industry came as the worst performer. 

GPR/APREA Composite REIT Index-7.1%-8.1%-4.1%-9.2%-7.6%n/a-6.0%-7.4%

GPR/APREA Composite REIT Index-13.2%-14.8%-4.3%-17.8%-13.3%n/a-10.8%-9.9%

The comprehensive GPR/APREA Composite REIT Index covered 182 Asia Pacific REITs with a combined free float market capitalization of USD 279.7bn as at 30 June 2022. Following the latest quarterly rebalancing of the GPR/APREA index series, which took effect on 20 June 2022 start of trading, Dusit Thani Freehold and Leasehold Property Fund (Thailand) was added to the GPR/APREA Composite REIT Index.