What were the best performing ASX real estate shares to hold in October?

With interest rates still at historic lows, Aussie real estate is high on investor radars.

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The S&P/ASX 300 (ASX: XKO) struggled in October. The index of the top 300 listed Aussie shares only barely managed to close the month in the green, finishing up 0.1%.

But not all stocks struggled last month.

In fact, the top 3 performing ASX real estate shares each returned more than 60 times the gains posted by the index.

We take a look at those outperformers below.

How did the top 3 ASX real estate shares perform in October?

Coming in with the top gains among the ASX real estate shares is…drum roll please…Arena REIT (ASX: ARF). The real estate investment trust (REIT) gained 6.6% in October, closing the month at $4.50 per share.

There was no price sensitive news released by the company, which invests mostly in childcare, healthcare and government tenanted properties. Although this isn’t the first time Arena has made it onto our top performers list. The REIT also counted amongst the top 5 share price gainers for ASX real estate shares during the 2021 financial year.

Arena pays a 3.36% trailing dividend yield, unfranked.

And number 2…

Coming in at a close number 2, with an October share price gain of 6.5%, is Aventus Retail Property Fund (ASX: AVN). The ASX real estate share owns, manages and develops large-format retail centres in Australia.

The Aventus share price got a big lift on 18 October when the company reported on its intentions to merge with Home Consortium Ltd (ASX: HMC) and HomeCo Daily Needs REIT (ASX: HDN).

At the time, Aventus’ chairman Bruce Carter said:

The merger is attractive for Aventus securityholders, both because of the potential offered by being part of the larger merged groups and because the offer reflects a material premium to Aventus’ trading price and its NTA [net tangible assets].

Aventus pays a 5.25% trailing dividend yield, unfranked.

The third best ASX real estate share performer in October

Rounding off our list of top ASX real estate shares to hold in October is another REIT, BWP Trust (ASX: BWP), which finished October up 6.0%. BWP invests in and manages commercial properties across Australia, notably including warehouses leased to the Wesfarmers Ltd (ASX: WES) hardware giant Bunnings.

Atop potential share price gains, BWP pays a 4.31% trailing dividend yield, unfranked.

Should you invest $1,000 in Arena right now?

Before you consider Arena, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Arena wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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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