Asia Pac REITs End 4.1% Lower in 2020 Despite December Gains
Hotel REITs suffered the biggest loss with an annual contraction of 21.1%, compared to the industrial sector’s 28.2% increase.
by Jeroen Vreeker, Global Property Research
Asia Pacific REITs advanced 5.4% in USD terms in December 2020 with gains seen across all sectors except healthcare. The strong growth in the last month of the year was, however, not enough to lift Asia Pacific REITs into the growth territory during the year.
| EUR | JPY | LOC | USD | |
| GPR/APREA Composite REIT Index | 3.0% | 4.3% | 3.2% | 5.4% |
The REITs’ total return performance came out at -4.1% for the 2020 calendar year. The table below shows the total return performances realised 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 | -12.0% | -8.9% | -9.0% | -4.1% |
Looking at the sector performances, the HealthCare sector recorded the biggest loss at -6.5% while the Retail sector gained most at 6.5% in December 2020:
| DIV | HCR | HOT | IND | OFF | OTH | RES | RET | |
| GPR/APREA Composite REIT Index | 5.4% | -6.5% | 2.1% | 4.2% | 6.2% | n/a | 3.4% | 6.5% |
Performances on an annual basis showed that Hotel REITs suffered the biggest loss with a contraction of 21.1%. This is in contrast with the Industrial sector’s strong performance at 28.2%.
| DIV | HCR | HOT | IND | OFF | OTH | RES | RET | |
| GPR/APREA Composite REIT Index | -10.1% | -10.5% | -21.1% | 28.2% | 12.6% | n/a | 0.5% | -11.4% |
The December 2020 total return performance was broadly positive, with gains ranging from 1% for Malaysia to 7.2% for Japan. Thailand, however, was an exception with a contraction of 2.6%.
Below are the performances in USD terms of the GPR/APREA Composite REIT Index and country sub-set indices:
Following the latest quarterly rebalancing of the GPR/APREA index series, 11 REITs were added. They are 360 Capital Group Limited (AUS), BlackWall Property Trust (AUS), Mindspace Business Parks REIT (IND), ESCON JAPAN REIT Investment Corporation (JPN), ITOCHU Advance Logistics Investment Corp (JPN), Sankei Real Estate Inc. (JPN), Sosila Logistics REIT Inc (JPN), Takara Leben Real Estate Investment Corp (JPN), XYMAX REIT Investment Corporation (JPN), Shinhan Alpha REIT Co. Ltd. (KOR) and AREIT Inc (PHL).
BHG Retail REIT (CHN) no longer meet the relevant Free Float Market Cap size hurdle and was removed.
The comprehensive GPR/APREA Composite REIT Index covered 176 Asia Pacific REITs with a combined free float market capitalisation of US$316.1 billion as at December 31, 2020.
