It's a great time to be an ASX share market investor because the S&P/ASX 200 Index (ASX: XJO) just hit a new 52-week high of 8,144 points. That also suggests a number of the underlying businesses have hit 52-week highs as well.
We don't have a crystal ball to tell us what's going to happen next, but I believe that some of these high-flying stocks are still investment opportunities despite their current high prices.
With the world now entering a phase of interest rate cuts, it could be compelling to look at some of the stocks that have been most affected by higher interest rates, such as real estate investment trusts (REITs).
Commercial property businesses have suffered a double blow — not only have higher rates been a headwind for valuations, but the higher cost of debt has impacted their net rental profits.
3 ASX shares setting new records
Let's look at the recent performance of three ASX shares that I still think are buys. Remember, though, there's no concrete guarantee they will beat the market over the next 12 months.
The Centuria Capital Group (ASX: CNI) share price is up 1.34% at the time of writing after touching a new 52-week high of $1.90 this morning. It has risen 22% in the last year.
The Charter Hall Long WALE REIT (ASX: CLW) share price is up 0.75% after reaching a 52-week high of $4.04 late this morning. In the past 12 months, it has climbed 16%.
The Scentre Group (ASX: SCG) share price is up 1.5% and has recorded a new 52-week high of $3.72 today. It has risen a hefty 42% in the last 12 months.
I believe the prospect of lowering interest rates can help the net asset value (NAV) value of these ASX shares, their rental profits and the distributions.
Here's why I'm bullish on each stock.
Centuria
This property fund manager oversees various property funds, including Centuria Office REIT (ASX: COF) and Centuria Industrial REIT (ASX: CIP).
I think Centuria's recent announcement that some of its office space can be utilised for smaller, lower-energy data centres could help increase the value of the office buildings significantly, and unlock strong rental income.
Lower interest rates could encourage more investors to allocate capital to Centuria to manage.
Charter Hall Long WALE REIT
I like the diversification offered by this ASX share's portfolio. It's invested across various property sectors, including distribution warehouses, agri-logistics, pubs, Bunnings buildings, and telecommunication exchanges.
Lower interest rates could increase the demand for commercial property and help the business pay an even larger distribution.
Scentre Group
Scentre owns the Westfield shopping centres in Australia and New Zealand.
This ASX share owns very valuable real estate — there is not enough space for new large shopping centres in the suburbs of Australia's major cities.
Lower interest rates could help Scentre's interest costs, but they could also increase foot traffic at the shopping centres, increasing the potential rental income over the longer term.
