ASX 200 REITs give investors an opportunity to gain exposure to Australian commercial and residential real estate.
Investors might consider REITs because they usually have predictable cash flows and dividend distributions and offer some capital growth opportunities.
This can provide solid diversification as these markets can move differently to other investments.
The team out of Macquarie has released a new report today analysing the sector.
Broadly speaking, the report highlighted that higher bond yields are putting pressure on REIT sector performance, particularly active REITs and fund managers.
The broker said the REIT sector is a relative loser from rising yields.
Conversely, technology, discretionary and financials are typically the best performers.
It said bond proxies including REITs are typically the worst.
Despite this, there are 2 ASX 200 REITs that have attracted outperform ratings and attractive price targets from the broker.
GPT Group (ASX: GPT)
The company is one of Australia's largest listed property trusts. It owns and manages a portfolio of Australian office, logistics, and retail assets worth more than $16 billion. It also has funds under management of more than $19 billion.
GPT Group shares have risen almost 22% higher in 2025 already.
The broker believes there could be more growth to come. It has an outperform rating and price target of $6.26 on this ASX REIT.
From today's share price of $5.40, this indicates an upside of almost 16%.
It said GPT is offering upside to earnings/valuation in the medium to long term.
Mirvac Group (ASX: MGR)
Mirvac Group (ASX: MGR) is a diversified property group with interests across residential and master-planned communities, office and industrial, retail, and build-to-rent sectors.
It has already risen an impressive 22% year to date.
In today's report, Macquarie placed a price target of $2.70 on this ASX REIT. This indicates an upside of 17.39% from today's share price of $2.30.
We prefer MGR on a resi recovery, trading on 18x FY26E P/E (earnings recovery year post FY25 trough).
