Which ASX REITs delivered the best returns over the past 3 years?

We reveal the top 10 performing ASX REITs over the past three financial years.

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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.

Motley Fool contributor Bronwyn Allen has positions in Goodman Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Aspen Group and Goodman Group. The Motley Fool Australia has recommended Aspen Group, BlackWall, and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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