The new coronavirus, under the influence of the real estate investment trust, REIT prices have fallen. However, as of now the price of real estate is down significantly, the rental income will be greatly reduced or not. So, why do REIT prices fell from. Fall factors and future trends, REIT characteristics and investment real estate types and think.
■Corona virus after the outbreak of the TSE REIT Index
The TSE REIT Index on the daily chart, and 2 on May 20, 2250. 65 after reaching from the beginning to fall,3 month 19 days in 1145. 53 until the value lowered. REIT Index fell heavily in the market to avoid the risk of funds, cash back to people for me.
REITS is a lot of money gathered from investors in real estate investment,investment profits to the investors as a dividend to the reduction of mutual funds that one. Financial instruments or to sell, investors increased aspect, fall in price is inevitable. This is the REIT index has plunged factor.
The TSE REIT Index is a decline in stocks by the difference in the size of the come. So, brand name a different value of the movement of the trends,invest in real estate for each type of referral you want. Incidentally, the value under the rate of calculation is 1 as of the end of and 3 on 19 October the price of used.
■Hotel-specific decline of large
REIT most of the to reduce the price of the hotel, a major investment destination and to brand name only. Corona virus for tourist self-restraint, the decision was a concern for me. Our hotel Investment Corporation, the 30% is the value lowered. The same to invest in a hotel hotel・・・the Investment Corporation also 33%lower that.
■Housing・residence-specific impact is limited
On the other hand, housing is the main investment destination and to brand name is,other than decliners, but not great. The corona virus spread by the residents, but instantly dismissed that idea based on,the effects were limited of course. In fact, comforia Investment Corporation is 56%,Daiwa Securities Group living and Investment Corporation in 64% of the values falling for that.
■Other real estate invest in stocks is about 40% decrease
Commercial facilities to invest an announcement was made regarding authenticity of media reports related to public offering is 41%,the office to invest in Invesco office・Jay Investment Corporation is 43%of the decliners was.
■The future value of the movement, the ongoing rent to be obtained from attention to the
REIT’s main source of income is investment property rental income from you. Thus, the future of the REIT the value of the movement is a continuous rental income from it is going to be important.
The rental contract is usually on a yearly basis, which is tied for the borrower’s performance has deteriorated from immediately rental income is not. However, the lessee’s response to the deterioration continues, the rental contract can be renewed, without rental income is reduced, it is also possible. In that case, REIT prices fall may know. [Article: yamamoto・The article list to look at]