GPR/APREA AsiaPac Performance Snapshot

Transcription

1 Asia Pacific Real Estate Association 217 Round-Up GPR/APREA AsiaPac Performance Snapshot...your guide to listed real estate returns in AsiaPac

2 The GPR/APREA AsiaPac Performance Snapshot tracks the dynamics of listed real estate securities (including REITs) across 12 AsiaPac countries and eight sectors, over multiple time horizons. The following asset classes are covered: Listed real estate (including REITs): GPR/APREA Composite Index REITs: GPR/APREA Composite REIT Index Equities: MSCI Asia Pacific Equities Index Bonds: JPM Govt Bonds Asia Pacific Year-to-December 217 Results Total Returns % Total Returns (USD) 1yr 3yrs* 5yrs* 1yrs* GPR/APREA Listed Real Estate GPR/APREA REITs MSCI Asia Pacific Equities JPM Govt Bonds Asia Pacific *Annualised compound growth Total Returns - Key Results Equities and listed real estate posted the highest total returns in 217, followed by REITs. Equities and REITs were the strongest performers over the past five years. On a ten-year basis, REITs outpaced rival asset classes. 6% December 217 Yields 15% Volatility (three years to December 217) 4% 4.6% 1% 11.8% 11.3% 12.6% 2% 3.3% 5% 6.1% % Listed RE REITs % Listed RE REITs Equities Govt Bonds Correlation listed real estate (three years to December 217) Correlation REITs (three years to December 217) vs REITs vs Equities vs Govt Bonds vs Listed RE vs Equities vs Govt Bond Yields, Volatility and Correlation - Key Results At present, REITs yields are higher than listed real estate yields by approximately 13 basis points. Listed real estate was more volatile than REITs by around 5 basis points over the past three years. REITs displayed a higher correlation with government bonds than with equities. Page 2

3 REITs and listed real estate outperform equities and debt over the long term Indexed Total Returns to 31 December 217 (22=) REIT Index Listed RE Index Equity Index Bond Index REITs deliver stable income streams Annual REIT Returns from Capital and Income 6% 4% 6.3% average stable income 2% % -2% -4% -6% Capital Return Income Return Page 3

4 GPR/APREA Composite Listed Real Estate Country Index Year-to-December 217 % Total Returns (USD) 1yr 3yrs* 5yrs* 1yrs* Australia China Hong Kong India Indonesia Japan Malaysia New Zealand Philippines Singapore Taiwan Thailand *Annualised compound growth Listed Real Estate - key results by country/region The top-performing listed real estate market in 217 was India, followed by China and Singapore. India and China also stood out on 3-year and 5-year basis. Thailand posted the best performance over a 1-year horizon. GPR/APREA Composite Listed Real Estate Country Index over the Long-term Country Index of Listed Real Estate Total Returns 1 Years to 31 December 217 (27=) China Australia India Indonesia Japan Taiwan (Large GDP countries) Hong Kong Malaysia New Zealand Philippines Singapore Thailand (Mid-sized GDP countries) Page 4

5 GPR/APREA Composite Listed Real Estate Sector Index Year-to-December 217 % Total Returns (USD) 1yr 3yrs* 5yrs* 1yrs* Diversified Office Residential Retail Industrial Hotel Healthcare Other Listed Real Estate key results by sector The residential and diversified sectors were the top-performers in 217. Residential and healthcare stood out on 3-year and 5-year basis. Healthcare was the best performing sector over a 1-year horizon. GPR/APREA Composite Listed Real Estate Sector Index over the Long-term 25 Sector Index of Listed Real Estate Total Returns 1 Years to 31 December 217 (27=) Diversified Hotel Industrial Office Residential Retail Page 5

6 Sector Index of Listed Real Estate Total Returns 7 Years to 31 December 217 (21 =) Healthcare (16.3%) was the best performing listed real estate sector, followed by retail (9.6%) and residential (9.1%), on a 7-year basis Diversified HealthCare Hotel Industrial Office Residential Retail Sector Index of Listed Real Estate Total Returns 3 Years to 31 December 217 (214 =) Residential and healthcare lead the pack on a 3-year basis, with total returns of 14.4% and 12.4% respectively. Diversified HealthCare Hotel Industrial Office Residential Retail Other Page 6

7 Index Constituents - Profile Country Classification^ Country weights^ Company Classification 24% 1% 1% 31% 25% 8% Developed 76% Emerging 14% 16% 19% JPN HKG CHN AUS SGP OTHS 29% Investor Developer Hybrid Other 38% REIT Status Property Sector 2% 8% 5%.4% 39% 61% 16% 51% 18% ^Based on country of operations Non-REIT REIT DIV RES RET OFF IND HCR OTHS Page 7

8 GPR/APREA Composite REIT Country Index Year-to-December 217 % Total Returns (USD) 1yr 3yrs* 5yrs* 1yrs* Australia China** Hong Kong Japan Malaysia Singapore Taiwan *Annualised compound growth **The China REIT index is an experimental addition to the series. It tracks seven REITs that hold assets located in China four of which are listed in Hong Kong and three in Singapore. The total free float market capitalisation of these seven REITs is US$3.83 billion. At present, no entities listed on Mainland China bourses are included in the China REIT series as there is no official REIT framework in place. REITs - key results by country/region Singapore tops the REIT total return rankings in 217. Hong Kong REITs stood out on 3-year, 5-year and 1-year basis. REITs with Chinese assets performed well above the AsiaPac region s average. GPR/APREA Composite REIT Country Index over the Long-term Australia Japan Country Index of REIT Total Returns 1 Years to 31 December 217 (27=) Hong Kong Singapore (Large market cap countries) Malaysia Taiwan (Small to medium market cap countries) Page 8

9 GPR/APREA Composite REIT Sector Index Year-to-December 217 % Total Returns (USD) 1yr 3yrs* 5yrs* 1yrs* Diversified Office Residential Retail Industrial Hotel Healthcare Other REITs key results by sector Healthcare and hotel REITs were the top-performers in 217. Healthcare also stood out on 3-year, 5-year and 1-year basis. GPR/APREA Composite REIT Sector Index over the Long-term 3 Sector Index of REITS Total Returns 1 Years to 31 December 217 (27=) Diversified Industrial Office Residential Retail Page 9

10 Sector Index of REITS Total Returns 3 Years to 31 December 217 (214=) Healthcare (12.4%) was the best performing REIT sector, followed by retail (8.3%) and diversified (7.2%), on a 3-year basis Diversified HealthCare Hotel Industrial Office Residential Retail Index Constituents - Profile Country Classification^ 4% Country Weights^ 9% 2% 5% 35% 8% Property Sector 4% 4% 1% 33% Developed 96% Emerging 14% 35% JPN AUS SGP HKG CHN OTHS 21% 29% RET DIV OFF IND RES HCR OTHS ^Based on country of operations Page 1

11 How big is AsiaPac s listed real estate market? 8 Free Float Market Capitalisation USD billion Dec- Dec-1 Dec-2 Dec-3 Dec-4 Dec-5 Dec-6 Dec-7 Dec-8 Dec-9 Dec-1 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 GPR/APREA Composite Real Estate GPR/APREA Composite REIT Market Cap in Numbers Constituents Free float in USD billion Free float change (m-o-m) Free float change (y-o-y) Listed real estate index % 24.21% REIT index % 12.72% Please read this important DISCLAIMER APREA s believes the information in this report to be reliable, but we make absolutely no representation or warranty nor accept any responsibility or liability as to its accuracy, completeness or correctness. Any expressions of opinion contained herein are those of Asia Pacific Real Estate Association Ltd only and are subject to change without notice. Nothing in this document should be taken as a recommendation and nothing should be construed to being taking account of specific investment objectives, financial situations and the particular needs of any reader. This document is no substitute for the exercise of judgment. Reader should obtain their own expert advice on all matters. This document is not and should not be construed as an offer or a solicitation of an offer to purchase or subscribe or sell any securities. The Asia Pacific Real Estate Association Ltd and its affiliates, Directors, officers and/or employees may own or have positions in any securities mentioned herein or any securities related thereto and may from time to time add to or dispose of any such securities. All rights reserved. Page 11

12 Methodology Q&A Q. What sources of information underpin this report? A. There are multiple sources, including GPR, APREA Research and Bloomberg. Q. Which geographical markets are covered? A. Australia, China, Hong Kong, India, Indonesia, Japan, S. Korea, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Allocations are based on country of operation. Q. Which sectors are covered and what comprises other? A. Diversified, office, residential, retail, industrial, hotel, healthcare and other. Other can include, data centres, storage etc. Q. What sort of companies are included in the listed composite index and why are REITs part of the series? A. The listed composite index is representative of the AsiaPac property stock market and includes developers, landlords and REITs listed on one or more of the regional stock exchanges. REITs are included in the composite index as they comprise around 4% of the listed real estate landscape. The basic inclusion rules for stocks are: $5mn minimum free float market capitalisation for two consecutive months 15% minimum free float factor 6% of operational turnover derived from investment activities and/or development activities Q. What does the REIT index cover and what is a REIT for the purposes of this index? A. The REIT index includes companies that comply with REIT legislation in their country of primary listing. Singapore business trusts are included in the REIT index only if they comply with both the following criteria: 1. the business trust derives at least 9% of operational turnover from investment activities; and 2. the business trust must formally commit to distribute at least 9% of income as dividends. Q. How is a total return defined in this index? A. Total return includes both the total of dividends received and the change in unit price over a period. This figure is expressed as a percentage over the beginning period price. Q. What is the difference between free float and value or market capitalisation? A. Free-float market capitalisation is calculated by taking an equity's price and multiplying it by the number of shares available in the market. Instead of using the total of active and inactive shares, as with the full-market capitalisation method, the free-float method excludes locked-in shares such as those held by insiders, promoters and governments. Q. From where is the information on individual company performance sourced? A. Bloomberg Q. Why were the MSCI Asia Pacific Equities Index series and JPM Govt Bonds-Asia Pacific series chosen to represent equity and bond performance? A. The two series are considered representative of regional equity and bond performance. Q. What is GPR? A. Global Property Research (GPR) provides services for leading financial institutions with top of-the-line benchmarks. All index products are based on an extensive and unique proprietary database of global listed property and infrastructure companies. GPR has a proven track record since For more on GPR, please contact Jeroen Vreeker at j.vreeker@gpr.nl or Floris van Dorp at f.van.dorp@gpr.nl Q. How can I learn more about this index or APREA? A. Please contact Sian Howe Chua at sianhowe.chua@aprea.asia, or visit APREA s website Page 12

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