How are ASX Real Estate Investment Trusts (REITs) performing in 2022?

How have REITs been performing so far this year?

| More on:
REIT written with images circling it and a man touching it.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • ASX REITs have had a rough couple of years
  • Lockdowns and work-from-home have played havoc with this sector
  • So how is the REIT sector performing in 2022 so far?

ASX Real Estate Investment Trusts (REITs) have certainly had a rough couple of years on the whole. The global pandemic has been especially rough for this sector. Think about it. With work from home in force, offices closed and lockdowns coming and going, the profitability of office space, retail shopfronts and residential housing would have certainly taken a hit.

But how has this translated into the performance of ASX REITs? Let’s take a look.

So to kick things off, let’s check out the S&P/ASX 200 A-REIT Index (ASX: XPJ). It’s currently sitting at 1,596.9 points at the time of writing. That’s a good 66% or so above where it bottomed in the 2020 market crash, but still a little over 7% off of its pre-COVID high watermark that we saw in February 2020. Like many ASX shares, REITs have also taken a tumble more recently. Between new year’s eve 2021 and today, the index is down around 9.1%.

But let’s now dive deeper into some individual ASX REITs.

An ASX REIT share temperature check for 2022 thus far

To start with, let’s check out the ASX’s largest REIT, Goodman Group (ASX: GMG). Goodman is a commercial and industrial REIT known for its warehouses and logistics facilities. Goodman units have managed to shake off the pandemic rather well. It was only back at the end of 2021 that this company was hitting all-time highs. Even at today’s pricing, Goodman is a healthy 43% or so above its pre-COVID highs. In saying that, it remains down 12.3% year to date in 2022.

But other ASX REITs haven’t been so lucky. Shopping centre operator Scentre Group (ASX: SCG) is one that has struggled. It’s at $2.95 today so far, which is close to a quarter lower than its pre-COVID highs of around $4. Even so, it’s still up a reasonable, if not too dazzling, 5.7% over the past 12 months. But in 2022 so far, Scentre units have lost just over 9.2%.

National Storage REIT (ASX: NSR), which is a REIT that operates self-storage centres across the country, has done a little better. It’s down 8.75% over 2022 so far at the time of writing. However, it’s up a far healthier 30.6% over the past 12 months, and remains above its pre-COVID highs.

To wrap things up, let’s take a look at another REIT, Stockland Corporation Ltd (ASX: SGP). Stockland is a diversified REIT covering shopping centres, housing, retirement villages and industrial property. But unfortunately, this company hasn’t been a great performer of late. It’s down 9.1% in 2022 so far, as well as by 16.3% over the past year. It’s also a good 25% or so away from its own pre-COVID highs.

So all in all, it seems 2022 has been quite a harsh master to ASX REIT shares thus far. But then again, it’s only February, so who knows what the rest of 2022 will bring for the ASX REIT sector.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. 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.

More on REITs

A man sits at a desk holding a small replica house in his hand, upset at the sale of his property.
Broker Notes

Why did the Goodman share price suffer a sell-off in June?

June was a difficult month for many ASX shares, including Goodman.

Read more »

a man with hands in pockets and a serious look on his face stares out of an office window onto a landscape of highrise office buildings in an urban landscape
REITs

3 ASX financial shares going ex-dividend today

We check a trio of REIT shares trading without rights on Wednesday.

Read more »

farm workers examine an agricultural crop
Dividend Investing

Why the Rural Funds share price is falling today

Why is the Rural Funds share price tanking today? It's not as bad as it looks.

Read more »

a man dressed in businesswear stands with his back to the camera and hands on hips looking up at high rise buildings in a dense urban setting.
REITs

Why ASX-listed property shares could be on the chopping block

A top broker has cut its price targets on Australian REITs but also sees some opportunities in the sector.

Read more »

Three rock climbers hang precariously off a steep cliff face, each connected to the other with the higher person holding on and the two below them connected by their arms and rope but not making contact with the cliff face.
REITs

3 ASX 200 real estate shares that hit new 52-week lows on Friday

It's been a tough day for these three property shares as they plunge to new lows today...

Read more »

Man with rocket wings which have flames coming out of them.
Broker Notes

Top broker tips Lifestyle Communities share price to rocket 80% higher

Goldman sees major upside for this share...

Read more »

two women stand at a computer smiling in a large factory with high shelves piled with goods, as though working in logistics.
Broker Notes

2 ASX shares to buy if you don’t want to invest in the share market: experts

Sick of falling stocks? How about real estate? A pair of advisors reveal how they would invest right now.

Read more »

a farmer pats a small beef cattle bovine on the head in a green field with trees in the background.
REITs

I plan to hold this quality ASX dividend share forever. Here’s why.

Rural Funds is a high-quality ASX dividend share in my opinion. I plan to own it for a long time.

Read more »