Bond wipeout threatens Japan property fundraising as Reits slump

Businesstimes News
2026.01.27 09:13
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Japan's recent bond market turmoil is hindering fundraising for real estate investment trusts (Reits), which have already seen a significant decline in capital raising due to rising financing costs. In 2025, listed Reits raised only 74 billion yen, the lowest since 2009. Concerns over increased borrowing costs amid higher interest rates are expected to make fresh fundraising challenging in the first half of the year. The Tokyo Stock Exchange Reit Index has dropped 2.5% since January 20, reflecting the impact of the bond market's volatility and rising inflation costs for real estate managers.