The S&P/ASX 200 A-REIT Index (Index:^AXPJ) (ASX: XPJ) is relatively flat this week on last week's levels. A-REITs (or Australian Real Estate Investment Trusts) have been a popular investment choice this year, as low-interest rates force investors to chase yield. With ASX companies beginning to roll out earnings and reports, it's possible that investors' attention is focusing elsewhere for the moment.
Here's how the big ASX REITs are looking this morning
Goodman Group (ASX: GMG)
The ASX's biggest REIT – Goodman is down around 3% week-on-week and closed yesterday at $14.85, despite no major news coming out of the company. Goodman owns, develops and manages industrial real estate such as warehouses, office parks and business centres both in Australia and internationally. GMG shares are yielding 1.72% on current prices.
Stockland Corporation Ltd (ASX: SGP)
You may know Stockland for its titular shopping centres, but this diversified REIT also owns housing estates, industrial parks, retirement villages and more. Stockland shares are up for the week around 2.5% and around 35% for the year so far. Stockland has a yield of 5.9% on current prices and is looking unloved by the market with its price-to-earnings (P/E) ratio of 11.09.
Scentre Group (ASX: SCG)
Scentre shares are slightly up for the week, but with the 0.77% bump, we can really just say its flat. You would be most familiar with Scentre's Westfield shopping centres, of which it owns the entirety in Australia and New Zealand, making Scentre a pure retail play REIT. The company is yielding 5.53% on current prices and has a P/E ratio of 9.15.
DEXUS Property Group (ASX: DXS)
Perhaps a counterpoint of Scentre, Dexus is a play on office and industrial property with a concentration on CBD office space. The company also participates in property trading and development and works with other investors such as pension funds. DXS shares are relatively flat for the week but are still up 26% for the year and are yielding a 3.78% distribution on current prices.
Foolish Takeaway
In my opinion, if you're an investor who's interested in pursuing REITs, research and understanding the property a REIT holds is the most important thing to get right. Gearing is also a consideration to factor in. Low-interest rates and high property values can change quickly – and REITs who get caught out will not be appreciated by those investors!
