The S&P/ASX 200 Index (ASX: XJO) is down 0.21% on Thursday, while the S&P/ASX 200 A-REIT Index (ASX: XPJ) is up 0.13%.
Two popular ASX real estate investment trusts (REITs) have announced new dividends today.
Let's check them out.
2 ASX REITs reveal next dividend payments
National Storage REIT (ASX: NSR)
The National Storage REIT has announced an estimated dividend of 5.6 cents to be paid on 2 September.
The actual dividend amount will be confirmed on 21 August.
The ex-dividend date is 27 June.
The DRP election deadline is 1 July.
The ASX REIT is offering a 2% discount on the DRP price.
The DRP price will be the volume-weighted average price of National Storage REIT shares over 10 days commencing 1 August, less 2%.
National Storage REIT shares are steady at $2.39 apiece on Thursday. The REIT is up 1.91% over the year to date (YTD).
HomeCo Daily Needs REIT (ASX: HDN)
The HomeCo Daily Needs REIT has announced a dividend of 2.125 cents to be paid on 22 August.
The ex-dividend date is 27 June.
The DRP election deadline is 1 July.
This REIT does not offer a discount on its DRP price.
The DRP price will be the volume-weighted average price of HomeCo Daily Needs REIT shares traded between 2 July and 8 July.
The HomeCo Daily Needs REIT share price is up 1.53% to $1.33 at the time of writing.
The ASX REIT is up 14.22% YTD.
Thinking of buying REITs?
REITs have an obvious tailwind at the moment, given expectations of interest rate cuts in Australia and the United States.
As we reported earlier in the week, Dylan Evans from Catapult Wealth has provided his views on two popular ASX REITs.
Evans says the largest real estate investment trust, Goodman Group (ASX: GMG), is a buy.
Evans says (courtesy The Bull):
GMG benefits from growth in online retailing, changing supply chains, a tight property supply and quality industrial locations.
In our view, the data centre business is GMG's future growth engine offering additional upside.
Data centres are capital intensive, but are valuable assets in the long term and offer investors a reliable way to access the growing digital economy and increasing data demands.
The Goodman share price is $34.56, down 0.087%.
On the flipside, Evans sees BWP Trust (ASX: BWP) as a sell.
BWP stands for Bunnings Warehouse Properties.
Evans says the trust is "solid across most metrics" and a reliable option for income, recently offering a dividend yield of 5%.
However, he has a sell rating on this ASX REIT.
He says:
Our concern is BWP's reliance on Wesfarmers Ltd (ASX: WES), which contributes 85 per cent of rental income via Bunnings.
Wesfarmers, the owner of Bunnings, also has an ownership stake in BWP.
This relationship provides income security, but may also challenge BWP's capability of maximising rental returns in the long term due to its concentration with Bunnings.
The BWP Trust share price is steady at $3.59.
