industrial REITs properly positioned for long-term progress; Resilience of the Asian REIT market

Industrial REITs have outperformed resort, retail and workplace REITs over the previous 10 years. Their progress ought to proceed, based on Cushman & Wakefield.

HONG KONG SAR – Media Outreach – June 9, 2022 – Sturdy long-term drivers underpin a constructive outlook for the commercial sector in Asia regardless of near-term macroeconomic local weather uncertainty.

Actual property funding trusts (REITs) in Asia have proven relative resilience throughout the peak interval of COVID-19, supported by robust capital buildings, ample monetary liquidity and supportive regulatory insurance policies. A report by Cushman & Wakefield revealed that each one lessons have gained general momentum to get well strongly in 2021, when the annualized complete fee of return of REITs of every property kind went from damaging to constructive.

Industrial/logistics REITs, which have posted constructive returns all through, posted annualized complete returns of 24.7% in 2021, in comparison with accommodations and retail – the funding classes most carefully related to social distancing – which recorded 9.4% and 9.8% respectively. Pushed by unprecedented e-commerce progress over the previous three years, industrial/logistics REITs posted the best 10-year annualized complete returns of any asset class at 16.4%.

Catherine Chen, Director, APAC Analysis stated industrial/logistics REITs have seen a surge in capitalization as buyers look to the brand new economic system. “Modifications in financial exercise have undeniably introduced unprecedented challenges to conventional actual property sectors, corresponding to workplace buildings and buying malls. Alternatively, the surge of exercise within the new economic system has drawn buyers’ consideration to different sorts of actual property corresponding to logistics parks and knowledge facilities.

Sturdy long-term drivers imply new economic system REITs ought to stay resilient even because the pandemic abates. Asia’s rising center class, the world’s largest on-line retail market, and the rise intra-regional commerce all level to elevated industrial exercise. Even near-term uncertainties within the macroeconomic atmosphere might probably enhance demand for logistics belongings within the area, as operators accumulate reserves of warehouse house to hedge in opposition to provide chain disruptions.

Andrew Chan, Managing Director, Head of Valuation and Advisory Providers, Better China, stated, “2022 is anticipated to be one other banner 12 months for REIT IPOs in Asia, notably in China, as native authorities encourage the event of infrastructure-backed REITs as an vital financing car for builders. “

By Could 2022, 12 public infrastructure REITs had been efficiently listed in mainland China, marking a vital milestone for the home REIT market. The openness of public infrastructure REITs has supplied fairness financing channels for home infrastructure holders, with energetic secondary market transactions indicating market recognition of those merchandise. However, in comparison with extra developed international locations and world markets, Chinese language public REITs are nonetheless of their infancy. By way of the present proportion of public REIT market worth to market capitalization, China is at 0.05%, remarkably decrease than Singapore at 13%, america at 3% and Japan at 2%, which signifies appreciable future progress potential within the C-REIT market.

In comparison with different main markets in Asia, the Hong Kong REIT market has a much less diversified asset base, primarily holding conventional industrial belongings corresponding to buying malls, workplaces and accommodations. Fewer REITs in Hong Kong are specializing in new economic system belongings corresponding to logistics and knowledge facilities. In its report, Revitalizing the Hong Kong SAR REIT Market, the Hong Kong Financial Authority encourages a variety of property lessons to go public as REITs on the Hong Kong SAR inventory trade.

Please click on right here to obtain the report.
Please click on right here to obtain pictures.



Cushman & Wakefield 2021-2022 Asia REIT Market Perception Report, p.17.
For a proof of the annualized complete fee of return, see the report p.17 Part 3.3.

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a number one world actual property providers firm that delivers distinctive worth to property occupiers and homeowners. Cushman & Wakefield is without doubt one of the largest actual property providers firms with roughly 50,000 staff in over 400 workplaces and 60 international locations. All through Better China, 22 workplaces serve the native market. The corporate received 4 high awards from the Euromoney Survey 2017, 2018 and 2020 within the classes World, Company Letting/Gross sales, Valuation and Analysis in China. In 2021, the corporate had income of $9.4 billion in core providers of property, services and mission administration, leasing, capital markets, evaluation and different providers. To study extra, go to www.cushmanwakefield.com.hk or observe us on LinkedIn ( https://www.linkedin.com/firm/cushman-&-wakefield-greater-china).

#Cushman&Wakefield

About Michael Foreman

Check Also

Lindt & Sprungli shares: macroeconomic pressures, strong funds

xamtiw/iStock by way of Getty Pictures Funding Thesis: Though Lindt & Sprungli could come below …