After getting roughed up in 2011, real estate securities in the Asia Pacific region — and across the globe — came out swinging in first quarter 2012, providing returns in the mid-teens. But the power surge didn’t last. Renewed fears about the euro zone dominated the month of May, as markets declined across the board, according to the Asia Pacific Real Estate Association’s (APREA) May Regional REITs Monthly. But by the end of the first half, things were looking up again, and markets recouped much of their losses from earlier in the second quarter.
This month-to-month volatility in REITs points to the value of looking at a longer time frame; Asia Pacific REITs have consistently outperformed the broader equity markets during the past year in various countries. According to APREA’s June Regional REITs Monthly (on a year-on-year basis and in US dollars), Australian REITs beat their respective broader market 6.1 percent t