Market Analysis

SEPTEMBER 2019

By Patrick Ma, Director, Listed Products and Research, Admiral Investments

Global capital markets cheered after the U.S. Fed cut its benchmark rate by 25 basis points (bps) and trade talks between China and the U.S. showed signs of progress. Asia Pacific REITs’ outperformance is expected to return in October on the back of concerns over the global economic outlook and lower interest rate expectations.

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By Jeroen Vreeker, Global Property Research

All countries, except for Australia, advanced in the GPR/APREA Composite REIT Index, supporting overall gain for the region. Best performers were Taiwan, Thailand and Japan.

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AUGUST 2019

By Patrick Ma, Director, Listed Products and Research, Admiral Investments

The sentiment for global capital markets deteriorated in August. The U.S. 30-year treasury bond yield fell bellow 2% for the first time. Meanwhile, the negative yield curve for Germany signalled weakness in the EU economy. These helped contribtue to Asia Pacific REITs’ outperformance against equities. 

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By Jeroen Vreeker, Index Analyst for Global Property Research

Asia Pacific REITs were up 1.8% in August and outperformed equities during the period, according to Global Property Research. Hong Kong REIT index incurred the largest decline of 9.1% due to anti-extradition bill protests, while Thailand posted a solid gain of 10.3% in August.

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JUly 2019

By Patrick Ma, Director, Listed Products and Research, Admiral Investments

The global geopolitical environment improved in July after the U.S. resumed trade talks with China and moderated its sanctions against Huawei. These events bolstered market sentiment. The MSCI World rose 0.5% in July after a 6.6% jump in June. But challenges are seen ahead.

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By Jeroen Vreeker, Index Analyst, Global Property Research

The aggregate gain for the GPR/APREA Composite REIT Index was predominantly attributable to the increases recorded in Japan (3.6%), Malaysia (1.3%), China (0.9%) and Australia (0.6%). At the other end of the spectrum, there were contractions in Taiwan (-0.7%), Singapore (-1.4%), Thailand (-2.8%), and most specifically Hong Kong (-6.0%).

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JUNE 2019

By Patrick Ma, Director, Listed Products and Research, Admiral Investments

Market expectations for a U.S. rate cut and an improvement in Sino-US trade relation helped fuel June’s rebound for equity markets, leading to underperformance of Asia Pacific REITs.

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By Jeroen Vreeker, Index Analyst, Global Property Research

Asia Pacific REITs advanced 4.8% in USD terms in June and underperformed equities with the comparable MSCI AC Asia Pacific Index returning 5.4%. As a result, the GPR/APREA Composite REIT Index ended the second quarter 5.4% higher. This quarterly increase followed a 11.6% jump in Q1 2019.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.

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MAY 2019

By Patrick Ma, Director, Listed Products and Research, Admiral Investments

In May, geopolitics became a key concern dictating the global economic growth outlook. The trade war between the U.S. and China has worsened following a breakdown in tariff talks and a decision by the U.S. to put China’s Huawei on a trade blacklist. A “new Cold War” between the two economic powerhouses has emerged as both sides implemented new tariffs.

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By Jeroen Vreeker, Index Analyst, Global Property Research

With no additions nor deletions throughout the month, the GPR/APREA Composite REIT Index continued to cover 164 Asia Pacific REITs as at 31 May 2019. Asia Pacific REITs advanced 2.2% in USD terms and as such clearly outperformed equities with the comparable MSCI AC Asia Pacific Index contracting 5.8%.

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APRIL 2019

By Patrick Ma, Director, Listed Products and Research, Admiral Investments

Given the current policy environment, we may see cooling equity markets and a risk-off mode ahead, which will be supportive for the Asia Pacific REITs’ performance in the mid- to long-term.

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By Jeroen Vreeker, Index Analyst, Global Property Research

Asia Pacific REITs contracted 1.6% in USD terms and underperformed equities, with the comparable MSCI AC Asia Pacific Index adding 1.6%.

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MARCH 2019

By Patrick Ma, Director, Listed Products and Research, Admiral Investments

A concerted effort by governments and central banks to maintain growth through easier monetary and fiscal policies have helped to bolster Asia Pacific REIT’s performance in March.

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By Jeroen Vreeker, Index Analyst, Global Property Research

Asia Pacific REITs advanced 4.1% in USD terms and outperformed equities with the comparable MSCI AC Asia Pacific Index returning 1.3%. As a result, the GPR/APREA Composite REIT Index ended the first quarter 11.6% higher.

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FEBRUARY 2019

By Patrick Ma, Director, Listed Products and Research, Admiral Investments

Asia Pacific REITs have underperformed the region’s equity indices in February, with the GPR/APREA Investable REIT Index reporting -0.4%, compared to MSCI Asia Pacific’s +1.4%. On a year-to-date basis, Asia Pacific’s REITs have also underperformed the region’s equity indices.

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By Jeroen Vreeker, Index Analyst, Global Property Research

Further to the removal of Dolmen City REIT (Pakistan) that no longer met the size criteria, the comprehensive GPR/APREA Composite REIT Index covered 165 Asia Pacific REITs as at 28 February 2019. In February, Asia Pacific REITs lost 0.3% in USD terms, underperforming equities, with the comparable MSCI AC Asia Pacific Index adding 1.4%.

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JANUARY 2019

By Patrick Ma, Director, Listed Products and Research, Admiral Investments

The year 2019 started with a surprise stock market rally across the world, with the MSCI World reported an 8% gain for January. The markets have discounted most of the negative news about slower economic growth and global geopolitical issues. Instead, participants have focused on expectations of a slower pace of increases in U.S. interest rates and a possible reversal of the Fed policy stance.

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By Jeroen Vreeker, Index Analyst, Global Property Research

The comprehensive GPR/APREA Composite REIT Index, which covered 166 Asia Pacific REITs as at 31 January 2019, recorded a 7.5% gain in USD terms, and as such outperformed the broader equities with the comparable MSCI AC Asia Pacific Index adding 6.8%.

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