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Australian REIT Returns Recover As Confidence Grows (Australian Financial Review)

Australian REIT Returns Recover As Confidence Grows (Australian Financial Review)

September 10, 2021 – Listed funds investing in Australian commercial, retail and industrial real estate have been among the top performers during the past 12 months with sector returns of more than 28 per cent as they rebounded from the slump caused by COVID-19.

There is cautious confidence that market conditions will improve as vaccination targets are reached, according to analysis by the Property Funds Association and Property Council of Australia, but there are also concerns about the continuing impact of the pandemic and uncertainty caused by the possibility of new outbreaks.

Australian real estate investment trusts (A-REITs) at 28.4 per cent marginally lagged Australian equities at 28.8 per cent, while global equities outperformed both, returning more than 32 per cent.

Listed property took a 50 per cent hit at the outbreak of the pandemic in March last year, with the strong one-year return reflecting the recovery.

As an example, the share price of standout performer Arena, which invests in properties with long-term leases such as childcare and hospitals, has recovered to more than $4 after falling to about $1.48 in the initial market response to the pandemic.

Read more here..

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