Asia Pacific REITs Record Fifth Consecutive Monthly Increase
Hotel, retail and office REITs recorded significant gains while industrials slumped
By Jeroen Vreeker, Index Analyst for Global Property Research
September 4, 2020 – Asia Pacific REITs recorded their fifth consecutive monthly gain with the GPR/APREA composite index advancing 5.6% in August in USD terms. The regional REITs outperformed equities that added 5.1%. The table below shows the total return performances realized 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 | 4.5% | 6.0% | 4.7% | 5.6% |
No changes occurred in the composition, as a result of which the GPR/APREA Composite REIT Index continues to comprise 165 Asia Pacific REITs with a combined free float market capitalisation of US$276.6 billion as at August 31, 2020.
Looking at the sector performances, Industrial — a clear outperformer in the preceding month with a 15.1% gain —was now in negative territory (-1.4%). Hotel (15.9%) turned out to be the best performing sector carve-out ahead of Retail (9.2%) and Office (7.4%):
|
| DIV | HCR | HOT | IND | OFF | OTH | RES | RET |
| GPR/APREA Composite REIT Index | 5.7% | 2.9% | 15.9% | -1.4% | 7.4% | n/a | 2.7% | 9.2% |
The country performances are a representation of the market’s positive sentiment. Heavily weighted Australia (10.8%) positively impacted the Asia Pacific average. Below-average but positive total return performances were found in Japan (5.5%), Malaysia (3.9%), Hong Kong (3.1%), Taiwan (2.8%), Thailand (2.5%), China (1.5%) and Singapore (0.9%). Please find below the performances in USD terms of the GPR/APREA Composite REIT Index and country sub-set indices:
