The nation's real estate investment trusts are offering the most bonds since 2012 as Prime Minister Shinzo Abe's stimulus steps spark a property-market boom and cut costs for REITs to refinance.
Five issuers, including Sekisui House SI Investment Co. and GLP J-Reit, have sold ¥25 billion in notes so far this month, the most since November 2012, data compiled by Bloomberg show. Sekisui offered five-year debt at 0.374 percent on Feb. 18, compared with 0.63 percent for similar-maturity bonds a year earlier. The average yield on U.S. REIT debt was 3.1 percent, according to Bank of America Merrill Lynch data.
Abe's stimulus program to beat deflation has spurred a revival in the real estate market that has seen one gauge of prices stay near the highest in more than four years. Mizuho Securities Co. expects the trusts to focus on refinancing debt after industry data showed they raised ¥1.1 trillion via equity sales last year, more than double the amount in 2012.