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Weekly ASX REIT wrap: National Storage still the key

Real Estate Investment Trust

Last week saw a few big moves from the ASX real estate investment trusts (REITs) as the S&P/ASX 200 Real Estate Index (INDEXASX: XRE) fell 0.38%.

Check out what’s moving markets and which Aussie real estate shares I’m watching in the week ahead.

National Storage REIT takeover looms large

The National Storage REIT (ASX: NSR) security price climbed 6.19% higher last week and closed at $2.40 per share. It’s no coincidence that this is the same price offered by US-based Public Storage on 14 February in its takeover bid.

It looks like a bidding war is brewing for National Storage and that’s good news for security holders of the ASX REIT. The group’s stapled security price is now up 30.43% since the start of the year thanks to the battle between Public Storage and China-based GAW Capital Partners.

I think this is one of the biggest moves in the sector at the moment and certainly makes National Storage worth watching this week.

Vicinity Centres security price hits 52-week low

The Vicinity Centres (ASX: VCX) security price crashed 5.62% lower last week to close at a new 52-week low. The ASX REIT’s securities are valued at $2.35, while its dividend yield has jumped to 6.87%.

Vicinity Centres is big in the Aussie retail space but slumped lower last Wednesday after downgrading its guidance for FY 2020. Vicinity’s FY20 FFO per security guidance has been revised to a range of 17.2 cents to 17.4 cents, down from the previously guided 17.6 cents to 17.8 cents.

What were the other ASX REITs doing this week?

The Scentre Group (ASX: SCG) security price edged 0.53% lower last week and is now down 2.09% for the year with a 5.12% yield.

Stockland (ASX: SGP) securities jumped 5.77% higher and are up 15.15% for the year with a 5.19% yield.

Mirvac Group (ASX: MGR) securities finished 1.48% lower on Friday but up 1.22% for the year with a 3.72% yield.

The largest REIT on the market, Goodman Group (ASX: GMG), edged 0.30% lower last week but is up 22.59% for the year. Goodman Group securities are yielding 1.83% with a market capitalisation of $29.97 billion.

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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended National Storage REIT and Scentre Group. 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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