Reuters: Asia-Pacific real estate assets at 'high risk' from climate change, consultancy says

Read full article here: https://www.reuters.com/world/asia-pacific/asia-pacific-real-estate-assets-high-risk-climate-change-consultancy-says-2024-05-22/

"Nearly one in ten properties owned by leading real estate investment trusts (REITs) in the Asia-Pacific region may be at "high risk" of damage from climate change, particularly in coastal regions, a report published on Wednesday showed.

REITs, with an estimated global market capitalisation of about $3 trillion, are considered safe havens for long-term investors but damage from climate risks, such as floods and forest fires, could hurt valuations and boost insurance premiums, climate risk consultancy XDI said.

"What we are seeing is that the physical risks to built assets increase over time under climate change, and are particularly more pronounced in scenarios where global warming is allowed to accelerate," said lead author Philip Tapsall.

Individual companies and communities that stood to be affected need to do more to adapt to the risks, he added.

"We still have time to act, so what we are really trying to do is signal the existence of this risk.""