The 5 best ASX real estate shares of the 2021 financial year unmasked

Office space, industrial storage, retail malls and residential. These companies cover them all.

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ASX real estate shares delivered some outsized returns to patient shareholders over the 2021 financial year (FY21). At least, these top 5 ASX real estate shares certainly did.

From 1 July 2020 through to 30 June 2021 the All Ordinaries Index (ASX: XAO) gained 25%.

The index is unlikely to achieve that kind of performance during ordinary times. But these pandemic days are far from ordinary, with shares rebounding from their early 2020 viral selloff through much of FY21.

So too, we witnessed with the best performing ASX real estate shares. They continued their strong recovery through the financial year just past, far outpacing the returns from the All Ords.

So, without further ado…

Sunland Group Limited (ASX: SDG)

Topping the list of best performing ASX real estate shares in FY21 is Sunland Group. Over the financial year, the Sunland share price soared 109.4%, more than 4 times the gains delivered by the All Ords.

20 October was a standout day for Sunland. After the company reported it intended to sell some of its non-core assets and return the proceeds to shareholders, the Sunland share price closed the day up a phenomenal 47%.

Headquartered in Queensland, the property development and construction group listed on the ASX in February 1995.

Sunland closed the financial year trading at $2.45. With some 136.9 million shares, that gave Sunland a market cap of $319.8 million. The company (at current prices) pays a 6.3% dividend yield, 100% franked.

Home Consortium Ltd (ASX: HMC)

The second best performing ASX real estate share on the All Ords is Home Consortium, with a share price gain of 81.3% in FY21.

The internally managed property group is focused on ownership, development and management.

Shareholders have been rewarded by some strategic acquisitions over the year. That includes $133 million of new real estate assets acquired in May to help launch HealthCo, its pending real estate investment trust (REIT).

Home Consortium closed FY21 trading at $5.44 per share. With just over 290 million shares outstanding, that gave it a market cap of $1.6 billion. The REIT pays a dividend yield of 2.4%, fully franked.

Lifestyle Communities Limited (ASX: LIC)

Making the list at number 3 is Lifestyle Communities, with shares closing the financial year up 69.7%.

As the name suggests, the company develops and manages independent living communities for senior citizens. It’s also involved in lifestyle homes with sports and entertainment facilities.

Lifestyle Communities had been trading on the ASX since December 1998. It finished FY21 at $5.61 per share, giving it a market cap of $1.6 billion. The company pays a slender dividend of 0.4%, 100% franked.

Arena REIT (ASX: ARF)

Moving on to the fourth best performing ASX real estate share in the financial year just past, we have Arena REIT. Arena’s share price gained 62.2% over the 12 months.

The REIT listed on the ASX in June 2013 and mostly invests in childcare, healthcare and government tenanted properties.

Arena closed the year at $3.60 per share. With roughly 343.6 million shares outstanding, that gave it a market cap of $1.3 billion.

Centuria Capital Group (ASX: CNI)

Rounding off the list of top ASX real estate shares to hold in FY21 is Centuria Capital, with a share price gain of 57.5%.

The real estate funds manager has $16.8 billion of assets under management spanning the office, industrial and healthcare sectors across Australia and New Zealand. Commencing next week, on 16 July, Centuria will be included in the ASX 200.

Centuria closed the year at $2.76 per share, with a market cap of $2.3 billion. The company pays a 3.5% dividend yield, 38% franked.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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