Malaysia with 11 REITS has a USD1.43bil in market capitalization which is way behind others like Singapore (USD15.1bil); Hong Kong(USD8.3bil); Taiwan(USD1.53bi) and Thailand(USD1.52bil)

[ For the Malaysia REITs, it has still not included the about to list Sunway City Bhd (Rm3.7bil) and CapitaLand Ltd’s retail REIT(first foreign sponsored REIT on Bursa Malaysia)

Below are the top 10 Asian REITs by market capitalization(USD’bil):

This case highlights the risks in China’s booming but immature property market, the Hong Kong-listed real estate investment trust (REIT) said actual rents paid by tenants were lower than outlined in tenancy agreements.

Some details:

·        RREEF China Commercial trust is managed by Deutsche Bank’s property investment arm, 

·      The former landlord of its Beijing Gateway Plaza building, Tin Lik, had agreed to pay HK$278,526,708 (RM125.3 million) in compensation for the missing rent. He also agree to make further payment should that be necessary.

·       The amount was equal to the shortfall for the remainder of tenancy agreements at the building, which was bought by the REIT and packaged into a June initial public offering. 

·        Because of the payment, the manager considers that RREEF CCT will not suffer a shortfall of rental revenue by reason of the discrepancies identified

·        The rental shortfall, which the former landlord had attributed to “pre-leasing rental concessions to tenants” documented in agreements that had not been disclosed to the REIT manager. RREEF China’s units were at HK$4.52 before trading was suspended on Sept 6, pending Tuesday’s announcement, 12% below their June IPO price, and giving a 2007 dividend yield of 7.05%. – Reuters(11/9/07)

1.  RREEF China and
2. GZI REIT 

Earlier there is The CapitaRetail China Trust which  is listed in Singapore.

REITs, which pay most of their rental income as dividends, have caught on across Asia in the last five years because they give higher yields than bonds but tend to be less volatile than stocks. Many investors therefore are eager for

The Westfield Group (ASX:WDC) today announced its half year results, reporting operational segment earnings for the half year ended 30 June 2007 of $844 million, up 7.4% over the same period last year (on a constant currency basis). This represents 47.27 cents per security, an increase of 5.7%.Net profit for the six months was $1.97 billion, which includes property revaluations and mark to market adjustments.The distribution for the six months (including income hedging) was $946 million and 53.25 cents on a per security basis, representing 50% of the estimated full year distribution.Shopping centre assets were re-valued during the period resulting in a $1.19 billion increase, which includes $501 million of value created through development. The value increase in the balance of the portfolio was primarily driven by growth in underlying income.Westfield Group Managing Directors, Peter Lowy and Steven Lowy, said: “The key features of this result were a solid operational performance across the global portfolio; the continuing delivery of the extensive development program; the efficient use of capital; and the strengthening of the Group’s balance sheet.” For the 2007 year, the Group expects to complete $1.9 billion of major development projects (Westfield Group investment – $1.4 billion) of which $270 million (Westfield Group investment – $212 million) has been completed with a weighted average development yield of approximately 10%.Currently there are 16 major projects underway at a forecast investment of $7.2 billion, with the Group’s share being $5.1 billion.  This includes $1 billion of developments commenced in the first half. In addition, over the next three years, the Group is scheduled to commence in excess of $10 billion of new development projects.Operating highlights for the half-year include:

• Close to 100% occupancy in Australia, New Zealand and the United Kingdom. In the United States, the portfolio was 93.5% leased at period end.
• Comparable shopping centre net operating income growth of 6.1% in Australia and New Zealand, 2.6% in the United States and 6.7% in the United Kingdom.
• Strong growth in specialty retail sales in Australia and continuing growth reported in New Zealand, the United Kingdom and the United States.
• Strong leasing activity with over 2,400 lease deals completed globally, representing approximately 359,000 square metres of retail space.

At the date of this announcement, the Group has raised approximately $6.0 billion in 2007 mainly from:

• The issue of $1.26 billion Property Linked Notes;
• The formation of a new joint venture with GIC at Westfield Parramatta in Sydney, Australia for $717.5 million;
• The establishment of a £530 million wholesale fund in the United Kingdom;

and

• The issue of $3 billion ordinary equity from a Pro-Rata Entitlement Offer.

In addition, the Group has also recently announced:

• The strategic re-alignment of the United States portfolio – with the divestment of four assets in the St Louis market for US$1.04 billion and the re-investment into the growing Florida market with the acquisition of two assets for US$400 million;

and

• The formation of a new joint venture with LaSalle Investment Management Inc. investing $738 million for a 50% share in Westfield Doncaster in Melbourne, Australia.

OutlookThe Group has interests in 119 shopping centres across Australia, the United States, the United Kingdom and New Zealand with a gross value of approximately $62 billion and encompassing 22,450 retail outlets. The size and quality of the portfolio with its geographic diversity, combined with the Group’s intensive management, continues to provide the foundation for sustainable income and capital growth.“Focus will remain on the Group’s development program which will enhance the Group’s earnings. The Group currently has approximately $7 billion of development projects underway and in excess of $10 billion of new development projects expected to commence over the next 3 years. Given this extensive development program and the recent capital initiatives, the Group is well positioned for future growth”, Messrs Lowy said.The distribution forecast for the 2007 year remains unchanged at 106.5 cents per security. [The Westfield Group (ASX Code: WDC) is an internally managed, vertically integrated, shopping centre group undertaking ownership, development, design, construction, funds/asset management, property management, leasing and marketing activities and employing in excess of 4,000 staff worldwide.  It has investment interests in 119 shopping centres in four countries, with a total value of approximately A$62 billion and is the largest retail property group in the world by equity market capitalisation.]

Retailer Services

Westfield‘s success is linked to the success of the retailers leasing space in the shopping centres. Therefore strong, long-term relationships with some of the world’s best retailers has always been a priority for Westfield.In Australia and New Zealand, where a much larger proportion of retailers in shopping centres are small to medium sized businesses compared to the US, additional retailer education and consultancy services are now integral to Westfield’s operations to ensure a focus on quality retailing and customer service.Below are some of the support services available to Westfield retailers.

Retailer Support

There are times when retailers need one-on-one advice to boost a business or to manage a fast-changing environment. Westfield can provide skilled retail consultants who can provide independent assessments and recommendations which aim to assist the performance.This is an ongoing programme which has helped many retailers to understand the issues affecting their operations, including merchandise planning, shop presentation, financial management, building the brand and maintaining a service standard.

Retailer Skills Development

Providing encouragement and opportunities to increase the understanding of the many skills needed to run a modern retail business is an important part of the Westfield support.Training and educational programmes are put together using experienced communicators. They are planned to form a balanced package of retail training and cover subjects such as:

• Shop presentation
• Selling skills
• Service standards
• Budgets and planning
• Buying and category management
• Sales and marketing

Category Meetings

Category meetings are opportunities for retailers in a merchandise area to meet together with Westfield people to discuss ways to add value to the total category as well as their individual businesses. The meetings are arranged within centres and across a wider group of locations.

Study Tours

Each year there are study tours for retailers who want to stay at the forefront of new ideas and trends in the industry. The larger tour is to the USA and UK and provides introduction to some of the world’s best retail businesses. The Westfield contact creates openings into many businesses at a level that would not be available to an individual retailer. There is also a study tour for New Zealand retailers to Australia, where there is the opportunity to tour a number of Australian shopping centres and to have introductions to retailers in the same merchandise categories.

Market Segment Of Westfield Group: