Between October 2015 and August 2016, the S&P/ASX 200 A-REIT (Index: ^AXPJ) (ASX: ASX: XPJ) gained 20%, continuing the impressive performance of the real estate sector since the GFC downturn in 2008.
Over the past five years the index has more than doubled, if you include dividends reinvested, while the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has only managed capital gains of just under 26%.
Those gains explain why most of the large cap A-REITs and property companies now offer dividend yields that are relatively unattractive. Here's a selection.
- Goodman Group (ASX: GMG) – yield of 3.5% unfranked
- Scentre Group (ASX: SCG) – 4.8% unfranked
- Stockland Corporation Ltd (ASX: SGP) – 5.3% unfranked
- GPT Group (ASX: GPT) – 4.8% unfranked
- Shopping Cntrs Austrls Prprty Gp Re Ltd (ASX: SCP) – 5.4% unfranked
But investors who bother to look further can find some enticing dividends on offer from the smaller players. Here are five of them.
360 Capital Industrial Fund (ASX: TIX) 8.6% unfranked, paid quarterly
I've mentioned 360 Capital Industrial a few times because of its dividend. The trust also happens to be the largest pure industrial rent collecting vehicle on the ASX. That makes it a relatively simple business. The Industrial fund owns warehouses and distribution centres mostly on the East Coast of Australia. Tenants are widely diversified, with transport logistics representing 31%, consumer staples 20% and manufacturing another 15% as the three largest sectors.
Cromwell Group (ASX: CMW) 9.2% unfranked, paid quarterly
Cromwell is a global property manager as well as property investment provider. The company had a direct investment portfolio valued at $2.3 billion at the end of June 2016 and total assets under management of $10.3 billion across Australia, New Zealand and Europe. Distributions (dividends) in the year ahead are expected to be at least the same as the previous year (8.34 cents per share).
360 Capital Office Fund (ASX: TOF) 7.9% unfranked, paid quarterly
3260 Capital Office invests in and manages just three commercial office properties, with two in Queensland and another in Victoria. Dividends are forecast to be the same as the previous half year, 8.5 cents per unit (equivalent to a yield of 7.9% at the current share price of $2.16).
BlackWall Property Trust (ASX: BWR) 8.1% unfranked, semi-annually
BlackWall holds two small industrial properties in its income portfolio which are listed for sale, and also holds properties in its growth portfolio. A recent update reported that the income portfolio will hold $90 million worth of assets and the growth portfolio $51 million.
Aspen Group Limited (ASX: APZ) 8.0% unfranked, semi-annually
Aspen owns five holiday and accommodation parks around Australia and the Spearwood South industrial property in Perth. With no debt and $40 million in cash, Aspen is looking to grow its assets further – after completing two acquisitions in FY2016.
