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…

| More on:
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.

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

This Friday has been a pretty depressing one for most ASX 200 shares. With the S&P/ASX 200 Index (ASX: XJO) recording a 1.25% loss for the day, it was always going to be a tough one.

But some ASX 200 shares fared far worse than the index today. So let’s talk about three such companies that hit a new 52-week low during today’s trading session.

All three are in the real estate business, so that should tell you something about what the market is trying to get out of right now.

3 ASX 200 shares that hit new 52-week lows today

Our first unlucky share to check out today is Dexus Property Group (ASX: DXS). Dexus owns a number of real estate assets, of which most are commercial property.

This ASX real estate investment trust (REIT) slipped 3.84% to $9.51 a unit by the end of the day’s trading. That happens to be Dexus’ new 52-week low. This REIT is now down by more than 15.5% over 2022 thus far.

But Dexus wasn’t the only REIT exploring new territory today. Diversified property developer Mirvac Group (ASX: MGR), another ASX REIT, also had a shocker.

Mirvac owns both industrial and commercial office real estate. This company’s units ended up finishing at $2.06 each at the end of today’s trading, down 1.44%. But the REIT hit a new low of $2.04 earlier today. That puts Mirvac down by a painful 31% or so over 2022 thus far.

Another ASX REIT in the doldrums today is GPT Group (ASX: GPT), a shopping centre and diversified property company. GPT units also had a day to forget. It finished up at $4.32 a unit, down a hefty 4.42%. But GPT hit a new 52-week low of $4.32 earlier in today’s session.

Why the battering?

It’s very possible that this distaste for ASX REITs that investors are displaying today is a result of the interest rate rise we saw earlier this week.

There are few ASX shares that are affected more by rising interest rates than REITs. That is because, as leveraged land owners, REITs face higher borrowing costs directly, just as mortgage holders do.

No doubt ASX REIT investors will be hoping for a kinder week next week.

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 Scott Phillips.

More on REITs

Two women happily smiling and working on their computers in an office
Ask a Fund Manager

Investing in ASX office REITs? Here’s what to look for in the year ahead: fund manager

Office markets are almost directly related to Australia’s economic output and unemployment levels.

Read more »

Folder for Real Estate Investment Trust such as Vicinity Centres
Earnings Results

Vicinity Centres share price slides despite $1.2b FY22 profit

The market is bidding down the REIT's stock despite its seemingly strong full year earnings.

Read more »

Suncorp share price Businessman cheering and smiling on smartphone
Ask a Fund Manager

How rising inflation can benefit ASX office REITs: fund manager

Real estate is a good inflation hedge, with rising prices often being able to be offset by increased rents.

Read more »

A male executive worker wearing glasses and a blue collared shirt looks at his laptop screen with a concerned look on his face and his hand to his forehead as he watches his screen.
Earnings Results

Growthpoint share price lags ASX 200 despite ‘strong performance’ in FY22

The ASX-listed REIT announced its full-year earnings today. Here are the details.

Read more »

Two laughing young women holding shopping bags ride an escalator up to another level in a Scentre Group shopping centre
Earnings Results

Shopping Centres Australasia share price slips on FY22 results

The REIT reported positive figures to the market today but is wary of rising interest rates.

Read more »

Fund manager Grant Nichols
Ask a Fund Manager

This is the biggest issue for investors in ASX office REITs in 2022: fund manager

Tenants are looking to get into better quality office space often located outside of central city locations.

Read more »

Woman on the phone at a hardware store

BWP Trust share price lifts as net profit soars 85% in FY22

It wasn't just net profit that soared, with the REIT's property portfolio revalued 14.1% higher in FY22.

Read more »

A Chinese investor sits in front of his laptop looking pensive and concerned about pandemic lockdowns which may impact ASX 200 iron ore share prices
Earnings Results

Why did this $1.1 billion ASX 300 share just sink 9%?

This high-profile REIT looks to be coming under pressure amid a more challenging outlook for FY23.

Read more »