Investors may look to ASX REITs for their typically stable income through regular distributions and diversification benefits from exposure to real estate assets that often behave differently from other equity sectors.
Each week, Broker Bell Potter releases commentary and analysis on this sector.
The broker said REITs underperformed amongst a broadly overall flat week for the market last week.
Per last weekly, the return of earnings growth for the sector, increased cap trans activity and potential for debt-funded accretive acquisitions improving we see a setting where notwithstanding there may be less Aus rate cuts, the sector growth profile still improves.
Here is the latest guidance from the broker including one buy, one hold and one sell.
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Buy
Bell Potter has an optimistic view on HealthCo Healthcare and Wellness REIT (ASX: HCW).
This ASX REIT holds a $1.6 billion portfolio of 36 properties, including hospitals, aged care, childcare, life sciences and research facilities, as well as primary care and wellness assets.
The stock price has fallen approximately 31% so far this year; however, it seems Bell Potter anticipates a bounce-back.
The broker has a buy recommendation and $1.00 price target on the stock.
This indicates an impressive upside of 47%.
Hold
In its latest report, Bell Potter has a hold recommendation on Lifestyle Communities Ltd (ASX: LIC).
This ASX REIT is a developer and manager of communities for the over-50s, semi-retired, and retirees market in Victoria.
Its stock price has fallen more than 38% YTD; however, the broker appears to still have reservations.
Its price target sits at $5.70, which is roughly 5% higher than yesterday's closing price of $5.42.
Sell
Bell Potter has a sell recommendation on Centuria Office REIT (ASX: COF).
This ASX REIT has a portfolio of office and commercial property assets throughout Australia.
Its stock price has been volatile this year, but it is overall up 2% in 2025.
The broker has a price target of $1.10 on COF shares.
This is more than 5% lower than yesterday's closing price.
