It’s been a solid month so far for the ASX real estate investment trusts (REITs) with several big names climbing higher. Here’s why shares in these 3 groups have jumped so far this month.
National Storage REIT (ASX: NSR)
The National Storage REIT security price has jumped 11.63% in February, including a 6.19% gain yesterday.
This comes after the self-storage REIT confirmed takeover talks with China-based GAW Capital Partners last week. However, National Storage REIT wasn’t done there.
The ASX REIT’s shares surged higher yesterday after receiving a competing bid from US-based Public Storage for $2.40 per share.
While nothing has been set in stone, it’s clear that there is high demand for the business from around the globe.
Goodman Group (ASX: GMG)
The Goodman Group share price has been one of those ASX REITs flying under the radar this month. Goodman Group is the largest of the groups with a market capitalisation of $30.28 billion right now.
Goodman Group shares are up 11.22% this month after a strong half-year result last Thursday. That brought the ASX REIT’s shares to a new 52-week high after reporting a 14.1% lift in half-year operating profit and upgrading its FY 2020 EPS guidance.
It’s worth keeping an eye on the Goodman Group share price in 2020 given its strong recent gains.
SCA Property Group (ASX: SCP)
SCA Property kicked off the February earnings season for the ASX REITs.
The retail REIT reported a $90.2 million profit for the half-year and increased funds from operations by 4.2%. That’s despite some signs of weakness in the Aussie retail sector, which affects SCA Property’s client base and rental income.
It was a solid start to the earnings season which was followed by similarly strong results from Goodman Group and Dexus Ltd (ASX: DXS).
However, it hasn’t been all smooth sailing for the ASX REITs, with the Mirvac Group (ASX: MGR) share price slumping after a disappointing half-year update.
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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Shopping Centres Australasia Property Group. The Motley Fool Australia has recommended National Storage REIT. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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