3 top ASX REITs to buy in April 2024

Analysts see these REITs as a great way to invest in the property market.

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As well as being able to invest in companies like Telstra Group Ltd (ASX: TLS) and Woolworths Group Ltd (ASX: WOW), the Australian share market also allows you to invest in the property market.

This is achieved through real estate investment trusts (REIT), which are companies that own and operate property assets. They also usually offer investors a nice source of passive income.

Three ASX REITS that have been rated as buys recently are listed below. Here's what you need to know about them:

Centuria Industrial REIT (ASX: CIP)

The first ASX REIT to look at Centuria Industrial.

It is Australia's largest domestic pure play industrial property investment vehicle with a portfolio of 88 high-quality, fit-for-purpose industrial assets worth a collective $3.8 billion. The assets are situated in key in-fill locations and close to key infrastructure.

UBS is positive on the company and recently retained its buy rating and $3.71 price target on its shares. The broker was pleased with the company's performance during the first half, noting that it outperformed expectations and upgraded its funds from operations full-year guidance thanks to strong like-for-like rental growth.

Its analysts are expecting some attractive dividend yields from its shares in the near term. They are forecasting the company to pay dividends per share of 16 cents in both FY 2024 and in FY 2025. Based on the current Centuria Industrial share price of $3.44, this represents dividend yields of 4.65% in both years.

Dexus Convenience Retail REIT (ASX: DXC)

Another top ASX REIT for investors to look at is the Dexus Convenience Retail REIT.

It owns a portfolio of service station and convenience retail assets located across Australia concentrated on the eastern seaboard. Its tenant include Chevron, 7-Eleven, EG Australia, Coles Express, United, and Ampol.

The team at Morgans is positive on this REIT and has an add rating and $3.23 price target on its shares.

As for income, the broker is forecasting dividends per share of 21 cents in both FY 2024 and FY 2025. Based on its current share price of $2.75, this implies very large yields of 7.6%.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Finally, analysts at Bell Potter thinks that the Healthco Healthcare and Wellness REIT could be an ASX REIT to buy.

It has a mandate to invest in hospitals, aged care, childcare, government, life sciences and research, and primary care and wellness property assets, as well as other healthcare and wellness property adjacencies.

Bell Potter currently has a buy rating and $1.70 price target on its shares.

In respect to income, its analysts are forecasting dividends of 8 cents per share in FY 2024 and 8.3 cents per share in FY 2025. Based on its current share price of $1.24, this will mean yields of 6.45% and 6.7%, respectively, for investors.

Motley Fool contributor James Mickleboro 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 positions in and has recommended Coles Group and Telstra 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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