Japan’s real estate investment trusts fell, with the Tokyo Stock Exchange REIT Index dropping the most in eight weeks, after 10-year Japanese government bond yields rose to 1 percent for the first time in a year.
Investing in Tokyo apartments beat putting money into office buildings, malls and the domestic stock and bond markets over the past five years as a housing shortage cushioned rental incomes from years of deflation.
Japanese real estate investment trusts are set to double the amount of capital they raise through share sales this year, spurring a recovery in the nation’s real estate market, according to Deutsche Bank AG.
Nippon Prologis REIT Inc., a real estate investment trust set up by the world’s largest owner of industrial buildings, surged 24 percent in its Tokyo trading debut amid expectations for growing demand for warehouses.
Kenedix Residential Investment Corp., the first Japanese real estate investment trust to sell shares in more than four years, fell on the first day of trading in Tokyo on concerns that its property holdings are too small.