Logistics REITs an Emerging Force in Japan, by Nikkei Asian Review
Japan’s REITs bought a record $21.5 billion worth of property in 2013, and the biggest purchasers, accounting for 35 percent of the total, were REITs focused on logistics facilities, according to a May 6 article in Nikkei Asian Review. “Stronger demand for logistics centers, driven by growth in online retailing and a recovering economy, was largely responsible for the pickup in activity,” the article reports.
Until 2006, there was only one logistics REIT in Japan; today, there are six. Nippon Prologis REIT Inc. owns 24 properties, twice as many as when it went public in February 2013. Other logistics REITs in Japan include GLP J-REIT, Industrial & Infrastructure Fund Investment Corp. and Japan Logistics Fund Inc. As they benefit from the determination of many companies to make their distribution systems more efficient, logistics REITS are beginning to outperform the REIT market as a whole. “Over the 12 months through April 18, the Tokyo Stock Exchange REIT index fell by 8%, while the unit price of Nippon Prologis REIT jumped 22% and that of GLP J-REIT rose 1%.”
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