REITs Center

We would like to commend the MAS for taking proactive measures to constantly review Singapore’s REIT framework so that it remains relevant to the evolving landscape in the region as well as globally.

• Japan’ s hotel market achieved the largest domestic transaction volume in Asia-Pacific at US$1.1 billion in the first six months of 2019. Japanese REITs comprised nearly 50 percent of total transaction volume.
• Ayala Land Inc. (ALI), a leading property developer in the Philippines, planned to raise $300M to list the first REIT in the Philippines.

APREA members met with the Secretary, Department of Economic Affairs, Ministry of Finance, Government of India to make a representation on taxation of REITs submission.

We initiate coverage of the J-REIT sector with a selective investment stance toward large investment entities. New coverage includes Nippon Building Fund, Inc. (8951, NBF, N), Japan Real Estate Investment Corporation (8952, JRE, N), and ORIX JREIT Inc. (8954, OJR, OP).

As per data reports, globally real estate remains a principal component of most pension fund portfolios, with 87% of all public and 73% of all private sector pension funds currently investing in the asset class. REITs are seen as a stable investment class. As per APREA’s report on “The Impact of REITs on Asian Economies”, REITs are generally regarded as providing investment characteristics that lie between stocks and bonds. Similarly to bonds, REITs offer a relatively secure and steady income, in the form of dividends derived from rental income.

1. Singapore-listed REITs capped a stellar 12 months through June to give investors the highest returns 25.3%  in the region. The REIT sector in Singapore has grown to be one of the world’s most dynamic, no doubt a product of conducive policies as well as the presence of a vibrant investment community. 
2. Malaysia’s plan to develop the world’s first-ever airport Real Estate Investment Trust (REIT). The airport REIT will be the accelerator for M-REIT market
3. A reduction of Asia Pacific investment in Q1 can be mainly caused by domestic of capital. 

第一部分 国际市场REITs税制比较

第二部分 国内REITs的运行模式及税务问题

第三部分 以境内不动产在境外设立REITs的 中国税务影响

• With the help of low interest rate environment, Embassy Office Parks REIT has risen 21 per cent which outperformed other peers.
• Japanese capital outflows increased, targeting offices in Shanghai and Canberra as well as hotels in Seoul.

Insurance Companies – Investment in Debt Securities issued by Infrastructure Investment Trusts (InvITs)
May 2019