Asia Pacific REITs Recover As Hotel And Retail Stage Comeback

By Jeroen Vreeker, Index Analyst for Global Property Research

Gains were recorded across all sectors during the month.

Asia Pacific REITs recovered from the heavy losses seen in the previous month, with the hotel sector staging a strong comeback, followed by retail REITs.

Gains for other sectors ranged from 0.2% to 15%, with the office sector showing the least gains.

However, the regional REITs underperformed equities, which climbed 8.2% during the month. The table below shows the total return performances realised in April for the various currencies available for the GPR/APREA Composite REIT Index.

The comprehensive GPR/APREA Composite REIT Index covered 168 Asia Pacific REITs with a combined free-float market capitalisation of US$247.5 billion as at April 30, 2020.

During the last month, Nippon Healthcare Investment Corporation (JPN) merged with and rebranded Daiwa Securities Living Investment Corp. (JPN), Frasers Commercial Trust was combined with Frasers Logistics & Commercial Trust, while New Century REIT (CHN) and Sri Panwa Hospitality REIT (THA) were dropped from the index due to insufficient size. The table above and the range below indicate that returns across countries and the relevant property sectors continue to reflect the different exposures to the dislocations caused by the coronavirus pandemic and the social distancing measures aimed at slowing its spread.