Share on LinkedInShare on LinkedIn

ARTICLE · 03 SEPTEMBER 2004

Japan’s REITs Come of Age

While the official data on property values show that real estate prices and rents are continuing to decline, there is currently a lot of money--both foreign and domestic--looking for high yielding property, often to convert into a REIT (real estate investment trust).

JapanWealth Management
Darrel Whitten
Darrel Whitten
  • While the official data on property values show that real estate prices and rents are continuing to decline, there is currently a lot of money--both foreign and domestic--looking for high yielding property, often to convert into a REIT (real estate investment trust).
  • Indeed Japan’s REITs have come of age, and are now a viable investment class by themselves, with more REITs being listed daily, and offering +/-4% yields.
  • Japanese real estate companies are now learning to user "other people's" capital in their property development activities, often through REITs. This will help to deleverage one of the most highly leveraged (indebted) sectors in Japan, and will give these companies added profit growth leverage as profit margins improve in line with the decrease in debt leverage.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See more popular content from