Sumitomo yields rise on debt fatigue despite property boom

Tokyo

SUMITOMO Realty & Development Co is forecasting a third straight year of record operating income as Abenomics spurs a property market boom. That doesn't mean investors have unlimited appetite for its debt.

The nation's third-largest developer by market value has offered 330 billion yen (S$3.7 billion) in notes since 2013, accounting for 28.5 per cent of issuance by property firms, Bloomberg-compiled data shows. Its bonds due June 2025 pay an extra yield of 54 basis points over the sovereign, compared with 49 for similar-maturity paper of Nomura Real Estate Holdings Inc, whose local debt score is one level lower.