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Listed A-REITs - Trading Metrics

Trading Metrics of the listed A-REITs on a sector by sector basis

We have reviewed some key trading metrics to see how the listed property securities are performing on a sector-by-sector basis, based on closing prices at 5 April 2022. Some of the key findings are summarised below:
  • The majority of the portfolios are trading on distribution yields of around 4% - 6%. We consider this to represent the current “core” range for distributions in the listed sector.
  • Apart from the Fund Managers, the majority of the listed portfolios are trading at a discount to their NTA per unit. The exception appears to be portfolios which are seen to be resilient in the current economic climate, such as convenience-based retail portfolios (SCP, HDN), childcare portfolios (ARF, CQE), Bunnings anchored retail portfolios (BWP, NPR) and Self-Storage (NSR).
  • Fund Managers with a track record of strong growth are valued highly by the market and currently trade of much lower yields.
  • The Industrial sector remains in high demand as investors seek to back well-located properties which are integral to the supply chain of goods in the economy. The yields on CIP and DXI are tight, in the range of 4.5% - 5.1%
  • The Office sector continues to face uncertainty in demand because of COVID and how much space is required by tenants. The securities in the Office sector have a wide range of distribution yield, of 4.7% - 8.5%.
  • The Retail Sector is currently delivering yields of around 4.7% - 5.7%.
  • Specialised portfolios remain attractive as investors flock to portfolios which offer a degree of resilience in sectors such as Childcare (3.3% - 4.3%), Bunnings anchored retail (4.5% - 5.4%), healthcare (3.8% – 4.1%) and Self-Storage (3.6%). Convenience retail/petrol stations are currently offering yields of 6.1%.
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Published - 6/04/2022

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This publication is not and should not be construed as, personal financial product advice, an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Any opinion contained in the Report is unsolicited general information (general financial product advice) only. Read more here.