Thomson Reuters Indices has teamed up with real estate specialists Global Property Research (GPR) and industry group Asia Pacific Real Estate Association (APREA) to launch a suite of indices designed specifically to be the most comprehensive listed real estate benchmarks available for the Asia Pacific region.
Thomson Reuters has unveiled a new suite of real estate indices tracking the fast-growing Asia Pacific region.
The new TR/GPR/APREA Composite Index suite combines APREA’s regional knowledge with Thomson Reuters’ experience as an index calculator and GPR’s specialised expertise in real estate research and indexing.
The indices strike a balance between “income” and “growth” companies, recognising the importance of developers in the Asian market and the need for growth companies to be taken into account. They cover a broader set of countries than available elsewhere, 13 markets in total, and include REITs and high growth and high dividend yielding companies associated with real estate.
“With real estate equity returns outperforming conventional equities in Asia Pacific, the sector is enjoying a revival and increased investment,” said Lucas Garland, head of indices product management at Thomson Reuters. “We are thrilled to extend our real estate collaboration to include the regional industry body, ensuring that together we are able to provide indices which truly reflect the Asia Pacific property landscape and are ideal to provide global and local investors with liquid access to the asset class.”
“As a listed real estate index specialist, GPR has been offering benchmarking solutions for many years,” said Jeroen Vreeker, head of GPR. “We have used our knowledge and insights into the Asia Pacific region to fulfil the wishes and needs of investors in this region.”
“The TR/GPR/APREA Composite Index family meets an essential need as a benchmark and portfolio management tool truly representative of Asia Pacific listed real estate, and it is being introduced at a very important time with Asian investors in particular expected to expand their exposure to property and non-Asian investors expected to increase their exposure to Asian real estate,” said Lim Swe Guan, Chairman of APREA.
The indices are based on total return and weighted by free-float market capitalisation in a way that represents the return characteristics of the overall Asia Pacific property stock sector, making them ideal for licensing as the basis of index-linked investment products such as exchange-traded funds (ETFs).
The indices further add to Thomson Reuters’ index line-up, which includes over 10,000 indices covering equities in 51 countries and 27 regions, bonds in 28 markets, and various other asset classes such as the venture capital and Shariah-compliant securities.