(The following was released by the rating agency)
June 5, 2012--Asia-Pacific's retail and office property markets are experiencing sluggish demand due to an economic slowdown in the region, Standard & Poor's Ratings Services said in an industry report card published today, "Asia-Pacific REITs Work Harder To Lure Tenants Amid Subdued Property Markets".
"Rated Asia-Pacific REITs have built strong property portfolios that are still likely to attract tenants amid the subdued markets," Standard & Poor's credit analyst Craig Parker said.
"The REITs have also strengthened their financial profiles to manage the pressures, including reducing debt, lengthening their debt-maturity profiles, and lessening their reliance on bank loan funding."
Standard & Poor's rates 40 REITs covering the region's major real estate markets of Australia, Japan, Hong Kong, and Singapore. We maintain a stable outlook on the sector, with a negative bias, because of potentially more difficult conditions in Asia-Pacific's property markets.