Breaking News: Aftershocks of the Japan earthquake

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SNL Financial Reports the immediate impact felt across the global REIT market

The epicenter of the magnitude-8.9 earthquake that struck Japan on March 11 was near the city of Sendai in the Miyagi prefecture, and severe effects were felt in several prefectures, or jurisdictions, on the east coast of Japan. The earthquake was the largest the country has seen in 140 years and the world's fifth-largest since 1900, the Los Angeles Times reported March 11.

SNL-covered real estate companies based in Europe, Asia and emerging markets own 174 properties in the Japanese coastal prefectures of Miyagi, Iwate, Fukushima, Ibaraki and Chiba.

Japan Logistics Fund Inc. shows the greatest exposure as a percentage of its total portfolio, with nearly 43% of the company's portfolio in the five prefectures. Saizen Real Estate Investment Trust has the highest exposure on a property-count basis, with 28 properties in the severely affected prefectures.

Regarding U.S. companies, Starwood Hotels & Resorts Worldwide Inc., ProLogis, Simon Property Group Inc. and AMB Property Corp. show exposure to the prefectures.

Starwood has the largest exposure as a percentage of its total owned portfolio; the hotel company has one property in the area, or 1.15% of its properties. ProLogis has the largest exposure on a property-count level, with four properties in the five prefectures. Simon has two properties in the area, and AMB Property has one property.

AMB Property said March 11 that its initial assessment confirms that damage to its properties is minor. It is working to confirm the extent of damage to its 420,000-square-foot facility in Sendai and will do so as soon as it is safe to travel to that region.

Probable maximum loss averages, which are not provided by every company, show that MORI TRUST Sogo Reit Inc. could incur the highest loss value; the company's average PML for properties in the five prefectures is 18.9%.

By Jason Lail


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