A-REITs perform well in competitive market
The Australian Real Estate Investment Trust (A-REIT) sector has performed well coming out of the global financial crisis but continues to be the laggard compared to its high-performing counterparts, according to a new report.
The Asia Pacific Real Estate Association found that market capitalisation of the Asia Pacific REIT market increased by 22.8 per cent year-on-year in 2010 to $156.8 billion, which marked a strong recovery.
Australia accounted for close to half (43.6 per cent) of this capitalisation last year, but the report found that the A-REIT market was not outperforming its respective general equities, falling short by 3.8 per cent.
The best performers in the Asia Pacific REIT market were Hong Kong, Japan and Singapore, which outperformed their local general indices year-on-year by 32 per cent, 28 per cent and 0.5 per cent respectively.
In the last quarter of 2010, J-REITS have continued to be the best performing of the Asia Pacific markets, with the index up 19.4 per cent, while A-REITs continued to be the laggard, with the index down 2.7 per cent in the same period.
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