The Tokyo Stock Exchange’s REIT Index has outpaced Japan’s Topix Real Estate Index since the country’s central bank (HQ pictured) put negative interest rates into play in January.

The gap between the two indexes hit its widest since 2005 at one point, as investors looked away from government bonds in search of returns. 

“Lower borrowing costs have increased dividend yields for J-REITs as most of their profit goes into dividends,” Credit Suisse analyst Masahiro Mochizuki tells Bloomberg. “Of course the real estate industry overall also benefits, but it takes time for them to profit after development, and they also pay more taxes.”

Central banks from Switzerland to the EU have enacted negative interest rate policies, and even the Fed’s Janet Yellen said she wouldn't rule out using negative interest rates if another serious downturn occurred.

But the Fed is heading in the opposite direction these days, ever-hinting at a coming rate hike. (Although not following through, yet.) [Bloomberg]