Asia REIT Market Insight 2023

2022-2023 ASIA REIT MARKET INSIGHT

CHAPTER 3 ANALYSIS OF REIT PERFORMANCE IN JAPAN, SINGAPORE AND HONG KONG

2.3 Overall Market Situation The Asia REIT market was established relatively late, with Japan only officially listing its first REIT in 2001. However, over the past twenty years the Asia market has achieved rapid growth, with the total number of REITs reaching 220 by the end of 2022, and the total market value growing to US$263.8 billion. Although REIT products have now been issued in many countries in Asia, they are still heavily concentrated in Japan, Singapore, and Hong Kong, which together account for more than 80% of the overall Asia REIT market share. The mainland China REIT market has also climbed rapidly to rank as the fourth largest Asia market in 2022.

Japan, Singapore, and Hong Kong account for more than 80% of total REIT market share in Asia. Consequently, this report section focuses primari ly on analysis of these three key markets. Unless otherwise noted, we refer to the annual financial reports published by REITs, focusing on the four financial indicators of gearing ratio, dividend yield, total return, and price-to book (P/B) ratio. At the time of this report there were 61 REITs listed on the Tokyo Stock Exchange, 40 on the Singapore Exchange, and 11 on the Hong Kong Exchange.

2021: The first batch of mainland China infrastructure REITs go public.

Figure 3: The Course of REIT Development in Asia

2002: The first REIT in Singapore,

CapitaLand Commercial Singapore Trust, is listed on the main board of the Singapore Exchange.

2019: The first REIT in India is listed.

2014: The first REIT in Thailand is listed.

US$ billions

350

300

2001: The first two REITs in Japan go public on the Tokyo Stock Exchange.

2011: The first REIT in South Korea is listed.

2020: The impact of the COVID-19 pandemic drags down the overall value of the Asia REIT market.

250

2022: The influence of rising interest rates in the U.S. again impacts Asia REIT market values.

200

2005: The first REIT was listed in Hong Kong SAR and Malaysia.

150

100

2008: The global financial crisis

50

negatively impacts the overall value of the Asia REIT market.

Figure 5: Number of REITs by Property Type

0

30

28

2011

2021

2017

2012

2015

2013

2018

2016

2019

2014

2001

2010

2022

2007

2002

2020

2003

2005

2008

2006

2009

2004

25

Source: Bloomberg Database, compiled by Cushman & Wakefield Valuation & Advisory Services.

20

Figure 4: Asia REIT Market Share (2001-2022)

中国内地 菲律宾 印度 韩国 台湾 泰国 中国香港 新加坡 马来西亚

15

20% 30% 40% 50% 60% 70% 80% 90% 100%

11

10

9

10

8

7

Japan Singapore Hong Kong, China Mainland China Others

6

5

5

5

4

5

3

2

2

2

2

1

1

1

0

综合 办公 工业 / 物流 零售 酒店 公寓 健康医疗 数据中心 日本 新加坡 中国香港 Mixed Use Office Industrial/ Logistics Retail Hotel Apartment Healthcare Data Center Japan Singapore Hong Kong, China Singapore Hong Kong, China Japan

0% 10%

Source: Bloomberg Database, compiled by Cushman & Wakefield Valuation & Advisory Services.

Source: Bloomberg Database, compiled by Cushman & Wakefield Valuation & Advisory Services.

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