Real estate investment trusts (REITs) can be overlooked in the face of popular dividend and growth sectors including materials, financials and tech.
However, sectors such as materials and tech have come under fire in recent weeks, driven by factors such as rising inflation expectations and China taking aim at commodity prices.
REITs with portfolios focused on highly sought after assets such as healthcare accommodation, industrial parks and childcare have been a stable movers amidst a volatile market. Many large and mid cap names not only pay stable and reliable dividends, but eyeing 52-weeks highs.
Arena REIT (ASX: ARF)
Arena REIT’s investment strategy is to invest in long duration properties in sectors such as childcare, healthcare, education and government to generate consistent yield for investors with earnings growth prospects over the medium- to long-term.
The Arena REIT share price managed to top its pre-COVID high of $3.39 this month, hitting a record high of $3.52 on Monday. The company declared an FY21 distribution guidance of 14.8 cents per share or a dividend yield of approximately 4.2%.
Charter Hall Social Infrastructure REIT (ASX: CQE)
Charter Hall Social Infrastructure is another stable moving REIT with a focus on childcare properties. Its shares have nudged 2% higher year-to-date, with most of its gains achieved during the COVID-19 rebound last year.
In the company’s half-year results, it announced an upgrade to its FY21 distribution from 15 cents per share to 15.7 cents. At today’s prices, this represents a yield of approximately 4.75%.
Centuria Industrial REIT (ASX: CIP)
Its share price has climbed to 52-week highs around $3.50, within reach of its pre-COVID highs of $3.75. The company has announced a number of recent positive updates including a Woolworths lease extension, $88.8 million Dandenong South industrial estate development and $27 million Arndell Park distribution centre acquisition.
While targeting a number of growth opportunities, the company announced an FY21 distribution guidance of 17 cents per share, which equates to a yield of approximately 4.8% at today’s prices.
Goodman Group (ASX: GMG)
Goodman Group is one of the largest ASX-listed REITs with a focus on high quality, in-demand properties including warehouses, large scale logistics facilities and business parks.
In the company’s third quarter update, it reaffirmed its forecast FY21 operating profit of $1.2 billion, representing an earnings per share growth of 12% on FY20. It also reaffirmed its full year distribution of 30 cents per share, representing a yield of 1.50% at today’s prices.
After a brief sell-off between late December 2020 and March 2021, Goodman shares are back on track and eyeing previous highs of $20. Goodman shares are currently fetching $19.23.