Japan’s 41 publicly traded real estate investment trusts 'are certain to buy fewer properties this year because they lack funds, said Daisuke Seki, chief executive officer of Tokyo-based IB Research and Consulting.

Japanese REITs, corporations that pool investor funds to buy real estate, purchased no properties in May, the first month without any such deals since January 2003, according to data compiled by IB Research, an independent real estate research company.

A shortage of investment capital was the 'biggest reason' for the trusts’ decision not to buy, while 'the expectation that prices will fall' also contributed to their reluctance to make purchases, Seki said.