Bond Wipeout Threatens Japan Property Fundraising as REITs Slump

Japan’s bond meltdown last week is threatening to further curb fundraising by real estate investment trusts that has already slowed to a crawl because of rising financing costs.

Listed REITs last year raised ¥74 billion ($480 million), the least since 2009, according to data compiled by Bloomberg. While property investment trusts kicked off this year with ¥31 billion of follow-ons, the momentum is unlikely to last, with concerns reflected in the sector underperforming the overall market as the Bank of Japan continued to raise borrowing costs.