Real estate investment trusts are raising more funds from shares and avoiding a volatile bond market, as investors bet "Abenomics" will boost property prices.
REITs offered ¥222 billion of equity this year, already the busiest quarter since the final three months of 2013. Note sales have dropped 39 percent to ¥23 billion from a year ago, after ¥149.6 billion of issuance last year that was the most since 2010.
Tokyo office prices have risen to the highest since the third quarter of 2008 and Mizuho Securities Co. expects a further increase as Prime Minister Shinzo Abe deepens economic stimulus. While 10-year government bonds yielded 0.345 percent on Monday, near the record low 0.195 percent reached in January, price swings have jumped to the highest since May 2013.