ASX REITs or real estate investment trusts provide a way for investors to gain exposure to the ever-growing Australian property market without having to buy a house or unit themselves.
ASX REITS are known for providing share price stability or growth, along with healthy distributions, which is the term funds use instead of dividends.
Newly-released data from the ASX quantifies the returns of the ASX REITs over the past three financial years.
Let's take a look at the figures to identify the best performer.
The top 10 ASX REITS over FY21-FY23
For the purposes of this article, we're going to focus on the 42 ASX REITs that invest in Australian property. We're excluding the index-based REITs and those invested in global property.
According to the data, here are the top 10 ASX REITS:
HMC Capital Ltd (ASX: HMC) returned an average of 30.41% per annum. This includes reinvested dividends which have historically averaged a yield of 2.37%.
Blackwall Ltd (ASX: BWF) returned an average of 27.88% per annum, including reinvested dividends which have historically averaged 9.07%.
The Aspen Group Limited (ASX: APZ) returned an average of 26.16% per annum. This includes reinvested dividends which have historically averaged 4.43%.
The Arena REIT (ASX: ARF) returned an average of 24.99% per annum. This includes reinvested dividends which have historically averaged 4.47%.
Garda Diversified Property Fund (ASX: GDF) returned an average of 15.17% per annum. This includes reinvested dividends which have historically averaged 5.54%.
Vicinity Centres (ASX: VCX) returned an average of 14.2% per annum. This includes reinvested dividends which have historically averaged 6.21%.
The Charter Hall Social Infrastructure REIT (ASX: CQE) returned an average of 13.73% per annum. This includes reinvested dividends which have historically averaged 5.85%.
Stockland Corporation Ltd (ASX: SGP) returned an average of 13.64% per annum. This includes reinvested dividends which have historically averaged 6.5%.
The National Storage REIT (ASX: NSR) returned an average of 13.35% per annum. This includes reinvested dividends which have historically averaged 4.68%.
Goodman Group (ASX: GMG) returned an average of 12.22% per annum. This includes reinvested dividends which have historically averaged 1.49%.
More about HMC Capital
So, HMC Capital is the top returning REIT over the past three years.
HMC is a property developer, owner, and manager. The company is involved in investment funds management and corporate properties — primarily retail and services centres.
Here is a chart documenting the recent performance of this ASX REIT.
Interested in the age-old debate? Check out our article on property or shares making the best investment.
