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The wider GPR/APREA Listed Real Estate final dash in December brought total returns back into positive territory for the full year, largely on the performance of markets in Australia and Japan.
Australia’s property stocks have had an outstanding year in 2021 on strong earnings expectations. With inflation expected to remain manageable, the country’s central bank is under no significant pressure to tighten policy rates from the currently historic lows.
Gains were also registered across the rest of the region’s heavyweights, with the exception of Chinese stocks, which continued to remain pressured.
A series of asset sales underscored concern that equity investors will bear the brunt of losses as developers offload projects to repay debt.
However, signs are mounting that China will ease curbs on its property sector. To stem off downward pressure on the economy, the central bank trimmed banks’ reserve requirement ratio in December.
Download the Report Read MoreWith the scheduled FOMC meeting slated to take place at the start of the month, Asia Pacific stocks were already bracing for a volatile ride from the get-go.
In a widely anticipated move, the Fed affirmed plans to dial back pandemic-era support for the economy, trimming asset purchases by US$15 billion a month. This puts the central bank on track to exit the program by mid-2022.
In the same mold, monetary authorities in South Korea and New Zealand also hiked its policy rates by another 25 basis points. While the moves were largely priced in, it presaged sentiment for the rest of the month.
The detection of the new Covid-19 Omicron variant – which health authorities observed as heavily mutated – sparked a sell off as investors raised alarms on the pandemic’s resurgence and its potential impact on economic growth. The region’s stocks, as measured by the MSCI Total Returns index, fell to its lowest from a year ago.
The region’s REITs were relatively more resilient, shedding 3% during the month to outperformed the region’s wider stock markets.
Download the Report Read MorePlease find below the rebalancing results for the following GPR/APREA index series, which will become effective as of 20 December 2021 (start of trading):
GPR/APREA Investable 100 Index
INCLUSIONS
|
CHN |
6158 HK |
Zhenro Properties Group Ltd |
|
JPN |
3295 JT |
Hulic REIT |
|
JPN |
3465 JT |
Ki-Star Real Estate Co. Ltd. |
|
PHL |
SMPH PM |
SM Prime Holdings |
EXCLUSIONS
|
CHN |
683 HK |
Kerry Properties Ltd. |
Liquidity too low |
|
JPN |
8986 JT |
Daiwa Securities Living Investment Corp. |
Liquidity too low |
|
MYS |
MSGB MK |
Mah Sing Group Bhd |
Liquidity too low |
GPR/APREA Investable REIT 100 Index
INCLUSIONS
|
AUS |
HDN AT |
HomeCo Daily Needs REIT |
|
IND |
EMBASSY IB |
Embassy Office Parks REIT |
|
KOR |
034830 KS |
Korea Real Estate Investment & Trust Co., Ltd |
EXCLUSIONS
|
NZL |
KPG NZ |
Kiwi Property Group Ltd |
Liquidity too low |
|
SGP |
CDREIT SP |
CDL Hospitality Trusts |
Liquidity too low |
GPR/APREA Composite Index + GPR/APREA Composite REIT Index
INCLUSIONS
|
AUS |
HCW AT |
HealthCo Healthcare and Wellness REIT * |
|
IND |
ASFI IB |
Ashiana Housing Ltd |
|
KOR |
034830 KS |
Korea Real Estate Investment & Trust Co., Ltd * |
EXCLUSIONS
None
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