Asia Pacific REITs Reverse Gains Made In January As Hotels, Retail Fall

Healthcare and residential REITs fell less

By Jeroen Vreeker, Managing Director at Global Property Research

March 2, 2023- February’s market action was a reversal from January 2023’s. The GPR/APREA Composite REIT Index declined (-4.5%) in the calendar year’s second month, in sharp contrast to the 5.1% gain realised in January 2023. The table below shows the total return performances in the previous month for the various currencies available.

	EUR	JPY	LOC	USD
GPR/APREA Composite REIT Index	-2.2%	0.0%	-0.9%	-4.5%

The sector performances were representative of the negative momentum with losses ranging from Healthcare (-1.3%) to Hotel (-6.2%) and Retail (-6.2%):

	DIV	HCR	HOT	IND	OFF	OTH	RES	RET
GPR/APREA Composite REIT Index	-3.5%	-1.3%	-6.2%	-4.2%	-3.5%	n/a	-2.0%	-6.2%

The decline in the respective country indices contributed to the regional benchmark’s loss most notably China (-6.3%) and Thailand (-10.5%) faring worse than average. Please find below the performances in USD terms of the GPR/APREA Composite REIT Index and country sub-set indices:

The best-performing REITs were US Masters Residential Property Fund (AUS: 6.1%), Parkway Life REIT (SGP; 5.2%), National Storage REIT (AUS; 4.4%), ARA US Hospitality Trust (SGP; 3.9%) and Comforia Residential REIT (JPN; 3.6%).

The worst performances came from Prime US REIT (SGP; -17.9%), Lippo Malls Indonesia Retail Trust (IDN; -17.6%), Ingenia Communities Group (AUS; -16.9%), CPN Retail Growth Leasehold REIT (THA; -16.2%), and Link REIT (HKG; -15.4%).