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Asia Pacific REITs Suffer Setback In January, Industrial REITs Slump

By Jeroen Vreeker, Managing Director, Global Property Research

Feb 7, 2024 – The GPR/APREA Composite REIT Index fell 3.6% in January 2024, suffering a setback in sentiment after the gains realized in November 2023 (9.2%) and December 2023 (8.3%) respectively. The relevant countries – except for Malaysia (0.3%) – recorded losses, ranging from -1.8% for Australia to -9.5% for China and -12.9% for Hong Kong, which suffered most after as a Hong Kong court ordered the liquidation of China Evergrande Group, the world’s most indebted real estate developer at the heart of the real estate crisis in Asia’s biggest economy.

None of the sectors ended the month positively with Industrial (-5.5%) recording the worst performance in the first month of the 2024 calendar year:

GPR/APREA Composite REIT Index-3.2%-5.3%-2.9%-5.5%-2.8%n/a-1.6%-4.1%

The best-performing REITs were Newmark Property REIT (AUS: 27.7%), Filinvest REIT Corp. (PHL; 18.6%), Embassy Office Parks REIT (IND; 11.2%), MREIT Inc. (PHL; 10.4%) and YTL Hospitality REIT (MYS; 9.4%). The worst performances came from Prime US REIT (SGP; -30.4%), Keppel Pacific Oak US REIT (SGP; -25.3%), Manulife US REIT (SGP; -25.0%), Champion REIT (HKG; -24.2%) and 360 Capital Group Limited (AUS; -16.4%).