On 11th May 2020, NH Prime REIT, Lotte REIT, Shinhan Alpha REIT, E-REITs-KOCREF, Mode Tour REIT, K Top REIT, and A REIT comprise the total of seven REITs listed on the Korean stock exchange. In contrast to the average YTD return lingering at -17% for the six stocks excluding A REIT, the KOSPI index has already recovered most of its losses from its peak of 2,200 at the beginning of the year to a low of 1,400 recorded in mid-March to close at 1,935 on 11th May.

Concerns over the slowing real economy have had a greater negative effect on listed REITs than the overall market. Total footfall has dramatically fallen due to social distancing restrictions, ‘untact’ culture, school closures, and remote working, and consumers have turned away from large hypermarts, department stores, and shopping malls in favour of online channels. While there is no immediate impact on the office sector, it seems that deteriorating corporate earnings especially for those in international trade are being reflected in the prices of the office REITs. Most domestic listed REITs are exposed to retail and office assets and have thus suffered sharper price declines.