With newly emerging markets joining the world of listed REITs, global investors will soon have more choice of where to invest. More Asian countries are planning to roll out their versions of REITs in the coming months, after taking more than a decade to finally embrace the concept of securitizing real estate.
The performance of the property market in Asia over the past several years has been spectacular. Today, the choice for global REIT investors is limited to Australia, Japan, Singapore, and Hong Kong despite the fact that there are many countries in the region to incorporate the REIT approach yet only one or a few listings are seen. And that is ironic, given Asia-Pacific represents such a sizeable chunk of the global real estate market.
REITs are getting bigger in terms of market cap, while developers are getting smaller. It is important to note that the Asia-Pacific REIT universe has expanded over the past decade, since Singapore, Japan, and Hong Kong began rolling out regulations.
Key Market Trends
Market Sizes of RIET Industry Across Countries in the Region
Japan has the largest REIT market in Asia-Pacific, with a total market cap of EUR 130 billion and has 58 J-REITs listed on the S&P ASX 300 REITs index. Japanese trusts are small, but their total market capitalization ensures that J-REITs have the largest weighting in Asian REITs indices.
Although Australia has the most established and the second-largest market in the region, the number of A-REITs is shrinking because of ongoing mergers and acquisitions.
Singapore ranks as the third-largest REIT market in Asia-Pacific. While it, too, has lost S-REITs to takeovers, new vehicles are being launched in Singapore. Interestingly, the republic also offers cross-border trusts. The Singapore exchange boasts several REITs that own assets in China, India and the US, and are quoted on both local and foreign currencies.
Hong Kong has 10 REITs and India has 1 REIT listed.
Premium to NAV (%) in Australia by Property Type
Asia-Pacific real estate companies as a whole traded at a median 21.4% discount to NAV as of Oct. 2018. The group that has elected REIT status traded at a median 0.6% premium to their consensus NAV estimates, marking a 22-percentage-point difference from the group of companies that has not adopted the status. REITs headquartered in Japan traded at the largest premium to NAV, at 3.7%, while Australia-based REITs traded at a 0.5% premium and Singapore-based REITs traded at a 2.4% discount to NAV.
An infographic detailing the premium to NAV (%) metric in Australia by property type is attached below.
The report includes an overview of REITs operating across APAC. We wish to present detailed profiling of a few major companies which cover product offerings, regulations governing them, their headquarters, and financial performance. Currently, some of the major players dominating the market are listed below.
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Table of Contents
1.2 Study Assumptions
1.3 Scope of the Study
4.2 Insights on Returns And Dividends - Key Performance Indicators for REITs
4.3 A Brief on Regulatory Environment
4.4 Market Drivers
4.5 Market Restraints
4.6 Value Chain / Supply Chain Analysis
4.7 Porters 5 Force Analysis
4.7.1 Threat of New Entrants
4.7.2 Bargaining Power of Buyers/Consumers
4.7.3 Bargaining Power of Suppliers
4.7.4 Threat of Substitute Products
4.7.5 Intensity of Competitive Rivalry
4.8 Impact of COVID-19 on the Market
5.1.3 Hong Kong
5.1.6 New Zealand
5.1.7 Rest of Asia-Pacific
5.2 By Property Type
5.2.7 Other Types of Properties
6.2 REITs Profiles
6.2.1 Link REIT
6.2.2 Goodman Group
6.2.3 Scentre Group
6.2.5 Nippon Building Fund
6.2.7 Japan RE Investment Corporation
6.2.10 Capital Land Mall Trust
6.2.11 Ascendas REIT
6.2.12 Japan Retail Fund*