Thinking of buying an ASX REIT? Check out Macquarie's top picks

The leading broker has named its picks in the sector. Here's what they are.

If you are thinking of buying a real estate investment trust (REIT) this month, then it could pay to listen to what analysts at Macquarie Group Ltd (ASX: MQG) are saying.

That's because they have just revealed the ASX REITs that they think investors should be buying right now. Let's see what the broker is recommending to clients:

Magnifying glass in front of an open newspaper with paper houses.

Image source: Getty Images

Which ASX REITs are being tipped as buys?

There are no less than 14 ASX REITs that Macquarie thinks are in the buy zone this month.

The first is Arena REIT No 1 (ASX: ARF), which it has an outperform rating and $3.96 price target on. However, with its shares trading at $3.77, the upside is somewhat limited from here.

It is a similar story for Centuria Capital Group (ASX: CNI). The broker has an outperform rating and $1.78 price target on its shares.

More upside is expected from Centuria Industrial REIT (ASX: CIP) shares. Macquarie has an outperform rating and $3.34 price target on this ASX REIT.

Fellow industrial property company Dexus Industria REIT (ASX: DXI) is also in favour with the broker. It has an outperform rating and $3.18 price target on its shares.

Data centres and more

For big returns, investors might want to check out data centre focused property company DigiCo Infrastructure REIT (ASX: DGT). Macquarie has an outperform rating and $5.33 price target on its shares, which implies potential upside of 56% for investors from current levels.

Fellow data centre (and industrial property) developer Goodman Group (ASX: GMG) is rated as outperform with a $36.06 price target.

Another REIT with potential to rise strongly is Dexus (ASX: DXS). The broker has an outperform rating and $8.08 price target. This suggests that upside of 15% is possible from current levels.

Limited upside is expected for Growthpoint Properties Australia Ltd (ASX: GOZ), with Macquarie holding an outperform rating and $2.57 price target on its shares.

The broker has outperform ratings on GPT Group (ASX: GPT) and Healthco Healthcare and Wellness REIT (ASX: HCW) shares with price targets of $5.38 and $1.05, respectively.

Elsewhere, Lendlease Group (ASX: LLC) could be another ASX REIT with major upside. Macquarie has an outperform rating and $7.79 price target on its shares. This implies potential upside of 36% over the next 12 months.

The final three are Mirvac Group (ASX: MGR), National Storage REIT (ASX: NSR) and Qualitas Ltd (ASX: QAL). Macquarie has outperform ratings on them with price targets of $2.56, $2.42, and $3.10, respectively.

Based on the above, the three to buy are arguably DigiCo Infrastructure REIT, Lendlease, and Goodman Group.

Motley Fool contributor James Mickleboro has positions in Goodman Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended 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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