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As the REIT regime has been expanding globally, corporate governance practices in emerging REIT markets have become a major concern for domestic and international investors alike. Idiosyncrasies stemming from the ownership models applied in Asian economies and the fact Asian REITs are often externally managed “captive entities” make issues pertaining to corporate governance of the listed real estate sector in Asia all the more important. To address these issues, the paper introduces an original framework that can be used to estimate the quality of corporate governance among externally managed Asian REITs. As a pilot study, the framework is applied to define a corporate governance index of REITs listed on the Singapore Stock Exchange (S-REITs). The index called R-Index enables the ranking of S-REITs’ corporate governance practices. It is then used to examine the relationship between corporate governance and the performance of S-REITs. The empirical tests based on several performance-related metrics provide evidence supporting a positive correlation between corporate governance practices identified in the R-Index and stock performances. However, we find no positive correlation with operating performance proxied by accounting measures. In other words, S-REITs with higher corporate governance tend to register better risk-adjusted returns but do not outperform operationally. To test for market efficiency, the study shows that S-REITs with the best corporate governance practices also have less information asymmetry.
Download the Report Read MoreConducive global developments placed financial markets on a risk-on mode in the final month of 2020. The prospect of widely available coronavirus vaccines, the US bipartisan agreement on fiscal stimulus, and the EU-UK post-Brexit trade agreement’s conclusion provided the necessary fillip to sentiment, sustaining momentum for real estate stocks to conclude on a positive note.
However, for the whole of 2020, real estate stocks continued to lag the wider equity markets, which have been supported by tech and pharma counters. Property cycles will eventually chart the sector’s own way out of the crisis, which although historically it lags an economic recovery, will be longer-lived, sustained by the region’s enduring structural fundamentals.
On 30th April 2020, The National Development and Reform Commission and The Securities Regulatory Commission jointly released the "Regulations regarding the Launch of China Infrastructure Real Estate Investment Trust (REITs)". This announcement marks the beginning of C-REITs in the Chinese market.
Asia Pacific Real Estate Association (APREA) has been actively supporting the launch of REITs in China. APREA offers views and experience from International REITs markets to help craft a unique China REIT regulatory framework. In addition, APREA has been promoting REITs knowledge globally to increase awareness of REITs potential.
With this regard, APREA has invited key players in the REITs industry to share their thoughts on C-REITs potential. The China REITs Handbook" is an educational manual on China's REITs, to allow the public, industry personnel and investors to better understand China's REITs. Asia Pacific Real Estate Association together with King & Wood Mallesons (China), KPMG (China), Cushman & Wakefield (China), and Guanghua School of Management, Peking University have jointly produced this manual.
Click Here To Purchase Download the Report Read More随着今年4月30日国家发改委和证监会联合发布的《关于推进基础设施领域不动产投资信托基金（REITs）试点相关工作》的通知，标志着中国公募REITs新的起航。
亚太房地产协会（APREA）也在积极协助推动中国REITs的发展，为中国提供我们国际REITs先进经验，以协助建立即具中国特色又具国际竞争力的REITs制度而努力。同时，协会也在积极参与REITs的教育和普及，让更多人认识REITs。
对此，协会有幸邀请到国内众多知名REITs专家和学者一同撰写《中国REITs手册》，此手册为一个持续更新的普及中国REITs的教育型手册，为让大众、行业人员及投资者更好地理解中国REITs。本手册由亚太房地产协会（APREA）、北京大学光华管理学院、金杜律师事务所（中国）、毕马威（中国）、戴德梁行（中国）的专家、学者共同完成。
Download the Report Read MoreCOVID-19 impacts are being felt across the REIT space. However, sectors will be impacted differently by both COVID-19 itself and the behaviors and measures that will be taken to address the outbreak. While at the time of this writing, REITs are likely oversold, pricing in the REIT market is diverging between property types, which could point to the future direction of private market values.
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