About J-REIT

There are two kinds of Real Estate Investment Trusts (REITs) in Japan, one is a Public REIT which is listed on the stock exchange, and the other is a Private REIT. When referring to 'J-REIT’, it commonly means the former in Japan. On this Website (J-REIT.jp), J-REIT represents a Public REIT.


In Japan, REITs were introduced with the amendment to the Act on Investment Trusts and Investment Corporations (Investment Trust Act) in November 2000. This Act permits two types of investment vehicles, namely ‘investment trusts’ and ‘investment corporations’. To date, all of the J-REITs have been formed as investment corporations (toshi hojin).

The first two J-REITs were listed on the Tokyo Stock Exchange (TSE) in September 2001, sponsored by two of the largest real estate corporations in Japan. Since then, the number of J-REITs has gradually increased and the J-REIT market had expanded significantly until 2007. However, due to the global financial crisis in 2007 and the Great East Japan Earthquake in 2011, the J-REIT market faced with a downturn and endured a stagnation phase. After the second half of 2012, the J-REIT market has been on a rising trend again. As of the end of December 2016, 57 J-REITs have been listed in Japan, and the total market capitalization has reached ¥12.1 trillion (US$103.5 billion): the second largest REIT market in the world next to the US-REITs’.
(See the MARKET page)


J-REITs are Corporation-type closed-end funds listed on the stock exchange, where their investment units are publicly traded. Compared with REITs in the U.S. or other countries, the typical aspects of the existing J-REITs are that they adopt an external management structure and that they remain the passive vehicles. The Investment Trust Act stipulates J-REITs to adopt an external management structure, whereby J-REITs can neither have employees nor conduct substantive activities, and they must outsource their asset management work to the asset management companies. Administrative matters and asset custody functions must also be entrusted to third parties. The governance functions within J-REITs such as General Unitholders’ meetings and Board of Directors take responsibility for monitoring asset management activities.

In addition, according to the current structure of J-REITs as passive investment vehicles, almost none of them engage in development activities. Since J-REITs are substantially specialized in the leasing business, the business risk is limited.

Investment Corporation Structure

J-REIT Sector/Property

J-REITs are classified into several categories, and existing J-REITs are all equity REITs. Some REITs invest in single asset class and others invest in multiple assets. J-REITs invest in a wide range of real estate, such as office buildings, retail properties, residential properties, hotels, logistical facilities, and health care facilities. As features of J-REITs’ portfolios, the proportion of offices is relatively high, and nearly all properties are located in Japan.

J-REIT Sectors

Office REIT

Exclusively investing in commercial office properties and renting space in those properties to tenants.

Retail REIT

Exclusively investing in retail properties, such as large regional malls and commercial buildings in downtown, and renting space in those properties to tenants.

Residential REIT

Exclusively investing in residential properties, such as apartment buildings, and renting space in those properties to tenants.

Logistics REIT

Exclusively investing in logistical properties, such as warehouses and distribution centers, and renting space in those properties to tenants. This type is sometimes called 'Industrial REIT'.

Hotel REIT

Exclusively investing in hotels and hotel-related facilities, such as onsen (hot spring) and spa-related facilities, and renting space in those properties to tenants.

Health Care REIT

Exclusively investing in health care-related properties, such as fee-based homes for the elderly, and renting space in those properties to tenants.

Diversified REIT

Investing in multiple property types and renting space in those properties to tenants. A REIT investing in two property types is sometimes called 'Compound REIT'.

See List of J-REITs