REIT ASIAPAC MAGAZINE REITASIAPAC AUGUST 2020 ISSUE | Page 11

SURVEY RED: GPR/APREA Composite REIT Index | BLUE: MSCI AC Asia Pacific Index source: GPR 2. INDUSTRIAL REMAINS THE MOST ATTRACTIVE REIT SECTOR properties close to major cities could have a higher and better use as last-mile logistics facilities, according to JLL. Q In which REIT sectors are you interested to invest? The industrial sector was the top choice of Asia Pacific fund managers for investment following amid the pandemic. Fund managers particularly cited REITs with leanings toward the logistics and data centre sectors as the most attractive investment destinations in light of the coronavirus pandemic. Office landed the second spot in the survey. Fund managers say office REITs are good for “medium-term” investments. Retail came in as the third most attractive REIT sector in the survey, followed by hospitality. Some fund managers particularly cited retail as a good “short-term” investment. Retail REITs have been one of the most affected in Asia Pacific with the pandemic accelerating the impact of e-commerce. At the height of widespread restrictions in March, data from Global Property Research showed that the retail sector performance slumped by 31.9% while the hotel industry fell 39.8%. Still, some retail malls have managed to gain a new lease of life by being converted into warehouses, or city fulfillment centres and the trend is seen to be gaining momentum. As more people shop online and expect delivery of goods within a few hours, so-called large-format retail 3. AUSTRALIA AND JAPAN REITS MOST ATTRACTIVE TO INVESTORS IN ASIA PACIFIC Q In which countries are you interested to invest? Fund managers heavily favoured Australian REITs for investment amid the global pandemic with Japan a close second. Aside from being known as safe haven economies for REITs, Ascott Residence Trust also noted that these two countries were among the first to ease restrictions, and thereby provided positive sentiment for hospitality REITs in both jurisdictions. “In Australia and Japan, domestic travel campaigns have been rolled out to encourage locals to travel, and in Australia and Singapore, international borders are set to gradually reopen with the formation of travel bubbles. These developments are positive for the tourism and hospitality sectors,” Ascott said in a statement to unitholders. 11