Japan-listed Logistics Asset Value Expanded by 15.3% in 2020

In the first ten months of 2020, J-REIT’s total AUM increased by approximately 1 trillion (US$9.4 billion), according to ARES.

January 15, 2021 – The market value of listed logistics facilities grew the fastest at 15.3%, or 470.9 billion yen (US$4.4 billion), in 2020 due to the growth of e-commerce in the wake of the pandemic, according to data from the Association for Real Estate Securitization (ARES) as reported in the latest Nikkei Real Estate Market Report. 

The size of the asset class as at the end of October 2020 was approximately 3.55 trillion yen

($34 billion), or 17.6% of the entire REIT market. On the other hand, office assets grew by 3%, or 237.3 billion yen, to 8.17 trillion yen, making up 40.6% of total assets under management (AUM). Retail facilities expanded just 1.7%

The report noted that J-REIT’s market size has continued to expand, with all three sectors registering growth, despite economic disruptions and uncertainty caused by movement, travel and operational restrictions. In the first ten months of 2020, in particular, J-REIT’s total AUM increased by approximately 1 trillion yen. 

According to the report, 19 years after its first listing, Japan’s real estate investment trust (REIT) sector has grown into a 20 trillion-yen industry in terms of AUM.

Since its inception, Japan REIT (J-REIT) has acquired a total of 4,273 properties in 19 years as of the end of October 2020, the report added. 

The J-REIT market opened in September 2001 with the listing of Mitsui’s Nippon Building Fund and Mitsubishi’s Japan Real Estate. The industry reached its first 10 trillion-yen AUM in April 2013 before accelerating to double its size by October 2020. 

For a breakdown of the AUM by asset type, please see table.

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