ASX All Ords shares have risen 1.7% over the week as more companies revealed strong earnings results and dividends.

Next week, a large group of ASX shares go ex-dividend. We provide a sample of these stocks below.

To pick up a dividend payment, you must own the share before the ex-dividend date.

ASX shares about to go ex-dividend

Here are 16 ASX shares going ex-dividend next week.

Which companies are reporting next week?

According to the calendar, we will hear from Adairs Ltd (ASX: ADH), Ampol Ltd (ASX: ALD), and Nib Holdings Ltd (ASX: NHF) on Monday.

On Tuesday, ARB Corporation Ltd (ASX: ARB), Woodside Energy Group Ltd (ASX: WDS), and Monadelphous Group Ltd (ASX: MND) are up.

On Wednesday, we'll get reports from Bapcor Ltd (ASX: BAP), Domino's Pizza Enterprises Ltd (ASX: DMP), and Fortescue Ltd (ASX: FMG).

Light & Wonder Inc (ASX: LNW), Wisetech Global Ltd (ASX: WTC), and Woolworths Group Ltd (ASX: WOW) will also report on Wednesday.

On Thursday, Karoon Energy Ltd (ASX: KAR), Monash IVF Group Ltd (ASX: MVF), and Qantas Airways Ltd (ASX: QAN) will release their earnings.

Ramsay Health Care Ltd (ASX: RHC), Super Retail Group Ltd (ASX: SUL), and Worley Ltd (ASX: WOR) will also be in the spotlight.

On Friday, we'll see reports from Coles Group Ltd (ASX: COL), Star Entertainment Group Ltd (ASX: SGR), and TPG Telecom Ltd (ASX: TPG).

The post 16 ASX shares going ex-dividend next week appeared first on The Motley Fool Australia.

What did Vicinity Centres report?

• Statutory net profit after tax: $805.6 million (1H FY25: $492.6m)
• Funds from operations (FFO): $351.0 million, up 2.0%
• Distribution per security: 6.20 cents, up 4.2%
• Comparable net property income (NPI) growth: +3.7%
• Net tangible assets (NTA) per security: $2.52, up 4.8%
• Portfolio occupancy: 99.6%

What else do investors need to know?

Vicinity Centres continued its strategy of shifting towards premium retail assets, with premium assets now making up 66% of the portfolio's value. Key moves included securing the remaining 75% interest in Brisbane's Uptown centre for $212 million, funded by divestments of non-strategic assets at a blended premium to book value.

Development plans are progressing, including the successful Stage 1 opening of Chatswood Chase and ongoing projects at Chadstone and Galleria. Strong leasing activity saw portfolio occupancy reach a record 99.6%, and leasing spreads move up to 4.6%, supporting future rent growth.

What's next for Vicinity Centres?

The group expects full-year FFO and AFFO to be at the top end of its guidance. Management is targeting continued investment in premium assets, with around $400 million allocated to capital expenditure in FY26 and a focus on mixed-use development opportunities. Comparable NPI growth is now expected to be around 3.5%, with development-related rent losses factored into guidance.

Vicinity's disciplined capital management aims to maintain flexibility for further investment, while its latest acquisitions and developments seek to boost income growth and portfolio value.

Vicinity Centres share price snapshot

Over the past 12 months, Vicinity Centres shares have risen 14%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Vicinity Centres FY26 earnings: Profit jumps, premium assets drive growth appeared first on The Motley Fool Australia.

What did Vicinity Centres report?

• Statutory net profit: $1,004.6 million (FY24: $547.1 million)
• Funds From Operations (FFO): $674 million; 14.8 cents per security (top end of guidance)
• Annual distribution: 12.0 cents per security (FY24: 11.75 cps), payout ratio of 95.4% of Adjusted FFO
• Portfolio occupancy: 99.5% (up from 99.3% in June 2024)
• Gearing: 26.6% (improved from 27.2%)
• Comparable net property income growth: +3.7% (FY24: +4.1%)
• Divested $457 million of non-strategic assets and acquired 50% of Lakeside Joondalup

What else do investors need to know?

Vicinity made several strategic moves during the year, including the acquisition of a 50% stake in Lakeside Joondalup for $420 million and the successful launch of major projects such as Chadstone's Market Pavilion and One Middle Road office tower. Stage 1 of Chatswood Chase's redevelopment also reopened, welcoming over 60 retailers.

The company exceeded its asset sales target, raising nearly $460 million during FY25 and accelerating its portfolio shift toward premium assets. Portfolio occupancy remains high at 99.5%, with a leasing spread of +2.9% in Q1 FY26, reflecting robust ongoing demand for its retail spaces.

What did Vicinity Centres management say?

Peter Huddle, CEO and Managing Director said:

It continues to be my privilege to lead Vicinity and share with you in more detail today, what I believe are our key achievements in recent months and provide a high-level update on our first quarter of FY26.

What's next for Vicinity Centres?

Looking ahead, Vicinity reaffirmed its FY26 earnings guidance, with FFO per security expected in the 15.0–15.2 cents range and Adjusted FFO at 12.8–13.0 cents. The company has started the revitalisation of its Galleria centre in Perth, set to complete before Christmas 2026.

Ongoing focus areas include remixing its portfolio, growing premium asset exposure, and maintaining financial discipline to support further rent growth. Management notes an optimistic outlook for the retail sector, citing strong population growth and limited new supply.

Vicinity Centres share price snapshot

Over the past 12 months, the Vicinity Centres share price has increased 17%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Vicinity Centres FY25 earnings: profit doubles, outlook upbeat appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Bendigo and Adelaide Bank Ltd (ASX: BEN)

The Bendigo and Adelaide Bank share price is down almost 4% to $12.72. This has been driven by the regional bank's shares going ex-dividend this morning. When this happens, it means the rights to an upcoming dividend are settled and new investors won't be entitled to receive the payout when pay day comes around. Last month, Bendigo and Adelaide Bank declared a fully franked final dividend of 33 cents per share. This will be paid to eligible shareholders at the end of the month on 30 September.

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman Y Gomez share price is down 4% to $24.45. This is despite there being no news out of the quick service restaurant operator. Though, it is worth noting that approximately 46.3 million Guzman y Gomez shares were released from escrow late last month. It is possible that some shareholders are cashing in today. In addition, the company's shares have been under significant pressure since the release of its results. Commenting on the results, Morgans said: "The FY25 result was slightly softer than expected. A weak 1Q26 trading update and lower than expected FY26 EBITDA margin guidance weighed on the shares and results in material near-term consensus revisions."

Vicinity Centres (ASX: VCX)

The Vicinity Centres share price is down 2% to $2.57. This may have been driven by a broker note out of UBS this morning. According to the note, the broker has reaffirmed its sell rating on the property company's shares with a slightly improved price target of $2.42. This implies potential downside of approximately 6% for investors from current levels.

Woolworths Group Ltd (ASX: WOW)

The Woolworths Group share price is down 3% to $27.93. This has also been caused by the supermarket giant's shares also going ex-dividend this morning for its latest payout. Last month, the struggling retailer released its FY 2025 results and declared a fully franked final dividend of 45 cents per share. This will be paid to eligible shareholders later this month on 26 September.

The post Why Bendigo Bank, Guzman Y Gomez, Vicinity Centres, and Woolworths shares are dropping today appeared first on The Motley Fool Australia.

Several high-profile retailers reported surprisingly strong results, beating the market analysts' consensus expectations.

Tortevski noted that some of those beats were due to improved margins from cost-cuts and other factors, not necessarily higher sales.

The analyst said (courtesy The Australian):

Consumer discretionary was the shock performer.

Not just because shoppers spent more, but because retailers like Coles Group Ltd (ASX: COL), Harvey Norman Holdings Ltd (ASX: HVN), and Super Retail Group Ltd (ASX: SUL) squeezed every cent through margin management, AI efficiencies, and cost cuts.

In August, ASX 200 retail shares outperformed the market benchmark S&P/ASX 200 Index (ASX: XJO).

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) lifted 7.4% and is up 14.4% in the year to date.

The ASX 200 increased by 2.6% in August and is up 8.7% in the year to date.

Why are ASX retail shares rising?

Tailwinds for ASX retail shares today include falling interest rates, a retail sales surge, and rebounding household spending.

In a new note, Macquarie said the consumer discretionary sector had a strong earnings season.

The sector's average outperformance above analysts' expectations was +2.9% with net positive earnings per share (EPS) surprises of +25%.

Macquarie said the Australian consumer was resilient and looking for value:

Australia's real consumer spending continues to accelerate, supporting growth in consumer stocks.

Macquarie commented that shoppers are "getting their mojo back" amid lower inflation, wage rises, and interest rate cuts.

The broker said:

RBA rate cuts have historically led to stronger spending, and so we should expect real consumer spending to continue to accelerate.

+3% real growth does not seem unreasonable.

The strong growth in real household incomes should support higher spending.

This real income growth is driven by a combination of nominal income growth, lower inflation and tax cuts.

What are ASX retailers saying?

Shopping centre owner Vicinity Centres (ASX: VCX) reported a near doubling of its statutory net profit after tax (NPAT) for FY25.

The FY25 net profit was $1 billion, up from $547.1 million in FY24.

The Vicinity Centres share price lifted to a five-year high of $2.63 the day after the report was released.

The mall operator said:

FY25 has proven to be a resilient year in terms of retail sales growth, benefiting from the confluence of population growth, strong employment, the accumulated benefit of income tax reductions effective 1 July 2024, Federal Government initiatives to reduce the cost of living throughout FY25 (e.g., energy cost rebates), as well as two interest rate reductions and the likelihood of further interest rate reductions in 2025.

Coles shares lifted 8.5% on results day after the supermarket reported a 4.3% lift in supermarket sales and underlying group NPAT of $1.18 billion, up 3.1%, for FY25.

The Coles share price reached an all-time high of $24.28 two days later.

Coles said:

Sales revenue was supported by solid volume growth with growth across both transactions and basket size, underpinned by our focus on value, quality, availability and the overall customer experience.

Customers responded positively to our seasonal 'Great Value, Hands Down' value campaigns, our focus on fewer, deeper promotions and our expanded range of products on everyday low prices.

CAR Group Limited (ASX: CAR) reported an 8% increase in revenue and a 10% boost to net profit for FY25.

Within six trading days of its report, Car Group shares had risen 12.5%.

Car Group commented:

The Australian automotive market has remained resilient over the past year, with strong consumer activity on carsales.

We've seen particularly strong performance in the used car market, while the new car segment has remained stable.

Traffic and enquiry volumes continue to be healthy, despite ongoing cost-of-living and interest rate pressures.

Which retail segments have the best outlook?

Australia's biggest bank, Commonwealth Bank of Australia (ASX: CBA), had this to say about the general retail outlook:

The Australian consumer has displayed caution in retail spend decisions, prioritising savings and debt repayments given uncertain global conditions.

Recent interest rate relief, tax cuts and moderation of inflation provide some support for the outlook.

Furniture and homeware businesses have the best outlook, according to Macquarie.

Temple & Webster Group Ltd (ASX: TPW) shares ripped after the online furniture company reported a 500% profit explosion for FY25.

The Temple & Webster share price hit a new record of $29.06 on results day last month.

Temple & Webster said:

With anticipated interest rate reductions, coupled with stimulatory government policies relating to housing, we remain optimistic that conditions in FY26 should be favourable for the furniture, homewares and home improvement categories.

Arguably, the most stimulatory policy supporting housing is the universal 5% first home buyer deposit scheme, which begins on 1 October.

Which segments of retail remain challenging?

Macquarie notes that some segments of the retail sector remain challenging, such as liquor markets.

Coles, which owns Liquorland and other liquor retail brands, said:

The liquor market remained subdued throughout the year with cost-of-living pressures continuing to influence customer behaviours.

ASX retail share Endeavour Group Ltd (ASX: EDV) owns Dan Murphy's and many pubs.

The company said:

Consumer spending in retail liquor remains subdued, however we expect retail liquor market conditions to improve as inflation moderates and real wages increase.

Further reading

You can view all the financial reports from key ASX retail shares here.

The post ASX retail shares 'the shock performer' of earnings season: expert appeared first on The Motley Fool Australia.

ASX 200 shares are currently down 0.34% to 8,988.6 points.

As the August reporting season continues, millions of dollars in dividends are beginning to flow into investors' bank accounts.

To receive an ASX share's dividend, you must buy or already own the stock before its ex-dividend day, which is typically one business day before the record date.

The record date is the day a company reviews its shareholder register to determine who is entitled to receive the next dividend.

Next week, a huge number of stocks will go ex-dividend. We provide a sample of ASX 200 shares going ex-dividend below.

If you want to buy any of these ASX 200 shares while they are trading cum dividend, time is now critical.

16 ASX shares about to go ex-dividend

Which companies are reporting next week?

Next Monday, 25 August, we'll hear from Ansell Ltd (ASX: ANN), Bendigo and Adelaide Bank Ltd (ASX: BEN), Endeavour Group Ltd (ASX: EDV), Fortescue Ltd (ASX: FMG), Pilbara Minerals Ltd (ASX: PLS), and Santos Ltd (ASX: STO).

On Tuesday, we'll see the latest numbers for ASX 200 supermarket share, Coles Group Ltd (ASX: COL).

Wednesday is a big day with Domino's Pizza Enterprises Ltd (ASX: DMP), Flight Centre Travel Group Ltd (ASX: FLT), Lovisa Holdings Ltd (ASX: LOV), Sigma Healthcare Ltd (ASX: SIG), Woolworths Group Ltd (ASX: WOW), and WiseTech Global Ltd (ASX: WTC) releasing results.

On Thursday, we'll see reports from Medibank Private Ltd (ASX: MPL), Mineral Resources Ltd (ASX: MIN), Qantas Airways Ltd (ASX: QAN), Ramsay Health Care Ltd (ASX: RHC), Sandfire Resources Ltd (ASX: SFR), South32 Ltd (ASX: S32), and Wesfarmers Ltd (ASX: WES).

Friday will bring the latest numbers for ASX 200 property share PEXA Group Ltd (ASX: PXA), and Steadfast Group Ltd (ASX: SDF).

The post 16 ASX 200 shares going ex-dividend next week appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Shares in the shopping centre owner and manager closed yesterday trading for $2.48. In early afternoon trade on Wednesday, shares are changing hands for $2.49 apiece, up 0.4%.

That puts the Vicinity Centres share price up 22.1% over the past 12 months, handily outpacing the 14.9% gains delivered by the benchmark index over this same period.

Atop those capital gains, the ASX 200 REIT also delivered 11.9 cents per share in unfranked dividends over the full year. At the current share price, that sees Vicinity Centre shares trading on an unfranked trailing dividend yield of 4.8%.

But with shares still trading near the five-year highs posted on 4 July, Fairmont Equities' Michael Gable believes now could be an opportune time to take profits (courtesy of The Bull).

Here's why.

Time to sell the ASX 200 REIT?

"Vicinity is a leading retail property group. It has $24 billion in retail assets under management across 53 shopping centres," said Gable, who has a sell recommendation on the ASX 200 REIT.

"The company delivered a statutory net profit after tax of $492.6 million in the first half of fiscal year 2025, up from $223.5 million in the prior corresponding period," he said.

With Vicinity Centres' strong share price gains in mind, and potential headwinds brewing, Gable concluded:

VCX has performed well running into full year results, and, in our view, is now looking expensive. We also expect industrial real estate investment trusts to outperform within the property sector. The technical chart suggests the uptrend for VCX is now at risk of ending.

A word from the CEO

Following the release of the ASX 200 REIT's half-year results on 19 February, Vicinity Centres CEO Peter Huddle said the company has been "simultaneously working on immediate, medium and long-term strategic priorities that support earnings resilience and sustained value accretion over time".

He added:

Our investment strategy remains anchored by our strong conviction that premium, fortress-style assets that are located in great trade areas and are well managed by retail property experts, have the potential to deliver superior and sustained income and value growth. Our conviction is supported by the drivers of growth we have in our business today.

Pointing to the strength of the ASX 200 REIT's portfolio, Huddle said that occupancy had increased from 97.9% in June 2021 to 99.6% in December 2024.

The post Forget the 5% dividend yield: Expert calls time on this outperforming ASX 200 REIT appeared first on The Motley Fool Australia.

They're also a great option for investors who do not wish to be bothered by bad tenants, leaking ceilings, and a litany of ongoing costs.

In this article, we compare the capital growth of the largest ASX REITs on the share market to residential property across the nation.

At a macro level, ASX REITs delivered a superior performance to physical property on a growth and total returns basis in FY25.

The S&P/ASX 200 Real Estate Index (ASX: XPJ) rose by 10.25% and produced total gross returns, including dividends, of 13.97% in FY25.

This was slightly superior to the benchmark S&P/ASX 200 Index (ASX: XJO), which rose 9.97% and provided total returns of 13.81%.

Meantime, the national median home value, which reflects all types of property in a single data point, rose by 3.4% and produced total returns, including weekly rents, of 7.1% in FY25, according to Cotality data.

The national median house price rose by 3.7% to $905,076 and delivered total returns of 7.2%. This equated to a 3.5% gross yield.

The Australian median apartment price lifted by 2.3% to $686,399, with total returns of 7%. This equated to a 4.6% gross yield.

Top 5 ASX REITs and how they performed in FY25

Here is the share price growth of the market's top five ASX REITs by market capitalisation in FY25.

Residential real estate in FY25: Houses

Here is the price growth of houses in each city and regional property market in FY25.

Residential property investment in FY25: Apartments

Here is the price growth of apartments in each city and regional property market in FY25.

Interest rate cuts

Interest rate cuts are a tailwind for both ASX REITs and residential property.

Cotality's research director, Tim Lawless, said the first rate cut in February arrested market weakness from November to January:

The first rate cut in February was a clear turning point for housing value trends.

An additional cut in May, and growing certainty of more cuts later in the year have further fuelled positive housing sentiment, pushing values higher.

The post How did ASX REITs vs. residential property investment perform in FY25? appeared first on The Motley Fool Australia.

Of course, term deposits are a great way to preserve wealth while generating a bit of passive income. However, for investors wanting to maximise their portfolios, term deposits aren't going to provide as big of a return with the RBA official cash rate lower.

Indeed, there are predictions that the RBA could cut the cash rate another three times over the next 12 months.

If that does happen, there are a few ASX 200 stock that I think could benefit significantly, such as the two below.

Vicinity Centres (ASX: VCX)

Vicinity Centres describes itself as one of Australia's leading property retail property groups. It has $24 billion in retail assets under management (AUM), making it the second largest listed manager of Australian retail property. The business has a direct portfolio, with interests in 51 shopping centres and it manages 24 assets on behalf of strategic partners.

When interest rates go down, it can boost operating profit because it reduces the cost of debt. A lower interest rate can also boost the underlying value of properties, which includes shopping centres.

The key asset of this business is its stake in the huge Chadstone Shopping Centre, which is a great, unique asset.

In its recent quarterly update for the three months to 31 March 2025, the business noted positive portfolio metrics were maintained and this continues to support current and future income growth.

The ASX 200 stock's occupancy remained stable at 99.4%, with FY25 year to date leasing spreads maintained at 3.5%, implying a solid rental growth rate for new rental contracts.

In terms of the sales performance of tenants, in the three months to March 2025, total portfolio retail sales were up 2.4%, with leisure, jewellery, retail services and homewares being notable outperformers.

It's also focused on acquiring "premium assets with strong growth potential at attractive pricing and divesting non-strategic assets at or above book value", meaning the value on the balance sheet.

Its last two distributions come to a distribution yield of 4.9%.

Pinnacle Investment Management Group Ltd (ASX: PNI)

I'd describe Pinnacle is a key business in the investment world – it takes stakes in funds management businesses and helps them grow. It also helps the fund manager by doing a lot of the behind-the-scenes administrative and infrastructure work, enabling the investors to focus on investing.

I like how Pinnacle has diversified its business by investing in fund managers in the northern hemisphere, as well as investing in fund managers focused on other assets than just ASX shares, such as international shares, credit and private equity.

Pinnacle's share price can be very volatile during bear markets, which I think can be a great time to gain/increase exposure to this compelling ASX 200 stock.

Pinnacle's fund managers are seeing ongoing net inflows, which I think is a very positive sign for the long-term success of the business.

If asset prices generally keep rising over the longer-term, then I think Pinnacle could be a very good investment, though I'd be aware volatility could happen.

It currently offers a grossed-up dividend yield of 4.3%, including franking credits.

The post Forget term deposits! I'd buy these two ASX 200 stocks instead appeared first on The Motley Fool Australia.

With most of these dividend announcements, the payday usually comes soon after.

But before a dividend payday, there must be an ex-dividend date. That's when the line is officially drawn in the sand, indicating which investors are eligible to receive said dividend and which are not.

The rule is that any investor with shares to their name as of the market close before a company's ex-dividend date gets the paycheque. Anyone who buys on or after the ex-dividend date misses out, with the seller retaining the rights to the dividend.

Next week will see a huge chunk of the ASX 200 trade ex-dividend for their latest payouts.

With that in mind, here are the 24 ASX 200 dividend shares that will go through this process next week.

24 ASX 200 shares trading ex-dividend next week

Foolish takeaway

So there you have it, all 24 of the ASX 200 shares scheduled to trade 'ex-div' next week. As you can see, there's a healthy mixture of stocks, large and small. They range from energy shares like Santos and financials like AMP to blue chip banks like Bendigo Bank and healthcare stocks like Pro Medicus.

Let's see what kind of dividends get announced next week.

The post 24 ASX 200 shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

Term deposits are still offering 5%-plus risk-free yields, so investors may be wondering which ASX 200 shares will be able to match this or better it with their dividend payouts in 2025.

In recent years, many investors have relied upon the ASX 200 mining and banking stocks for strong dividend income.

But it's unlikely the banks and miners will wow us with their dividends this year, according to expert forecasts.

A volatile iron ore price and weaker Chinese demand will likely lower dividend yields from the ASX 200 miners.

Of the six large-cap miners, only Fortescue Ltd (ASX: FMG) is tipped to pay more than a 5% dividend yield.

Exceptional share price growth for ASX 200 bank shares means dividend yields are likely to be lower this year.

Of the seven ASX 200 banks, only ANZ Group Holdings Ltd (ASX: ANZ) and Bank of Queensland Ltd (ASX: BOQ) are expected to pay a 5%-plus dividend yield.

Where can investors find 5%-plus dividend yields?

In the weeks before the first earnings season of 2025, which got underway this week, we have been researching analysts' predictions for ASX dividends this year.

Here are some examples of ASX 200 shares tipped to pay a 5%-plus dividend yield in 2025.

We have calculated these yields based on consensus analysts' dividend forecasts published on the CommSec trading platform, and share prices at the time of writing.

18 ASX 200 shares expected to pay 5%-plus dividend yields

Which sectors paid the best ASX dividends last year?

Last year, the smallest of the 11 market sectors delivered the biggest dividend returns.

The ASX 200 utilities sector, comprised of just 22 companies, delivered total returns of 17.48%. Dividends accounted for 7.05% of those returns.

The second-biggest sector for dividends was the ASX 200 financials sector. Total returns were 33.72%, with dividends making up 5.5% of those returns.

The post 18 ASX 200 shares set to pay 5%-plus dividend yields in 2025 appeared first on The Motley Fool Australia.

High or rising interest rates tend to hurt REITs because their debt becomes more expensive to service.

REITs usually have a fair bit of debt on their balance sheets to fund property purchases and developments.

Higher rates also make ASX REITs less appealing to income investors.

This is because investors can attain risk-free yields from bonds or term deposits at a similar rate of return instead.

But the tide is turning, with central banks in a range of nations, including the United States, Canada, England, the Euro Zone, and Sweden, reducing rates last year.

The Reserve Bank of Australia is expected to follow suit at some point in the first half of 2025.

This is why top broker JP Morgan says it's time to buy ASX REITs.

According to The Australian, the broker says interest rate cuts could lift earnings across the ASX REIT sector.

And as we all know, higher earnings have a direct impact on distributions (or dividends).

2025 dividend forecasts for ASX REITs

Let's take a look at the forecast 2025 dividend yields for the largest ASX REITs by market capitalisation.

For the purposes of this article, we'll focus on REITs with market capitalisations above $7 billion.

The following chart shows the consensus analysts' forecasts for annual distributions in 2025.

These forecasts have been published on the CommSec trading platform.

We compare these forecasts to the 2024 distributions and calculate the trailing and forecast dividend yields based on ASX REIT share prices at the time of writing.

These REITs are listed in order of market cap from largest to smallest in the group.

So, analysts expect GPT Group to pay the highest dividend yield among this group of ASX REITs in 2025.

Is it time to buy ASX REITs?

Many analysts are optimistic about ASX REITs for 2025.

Aaron Binsted, portfolio manager of Lazard's Australian equity income fund, says ASX REITs are likely to deliver better returns for income investors this year than bank shares.

As reported in the Australian Financial Review (AFR), Binsted points to Charter Hall Retail REIT (ASX: CQR) and Vicinity Centres as examples offering "modest growth but good yields of 5 to 6 per cent".

JPMorgan analyst Richard Jones said investors are showing new interest in ASX REITs beyond the sector's largest company, Goodman Group.

As this chart shows, Goodman Group has outperformed its peers listed above in terms of share price growth since interest rates began rising in May 2022.

This is mainly due to the artificial intelligence (AI) megatrend and Goodman's pivot into data centres.

There's been a mixed performance from other ASX REITs over the period.

James said investors currently see the ASX REIT sector as defensive amid expectations of lower earnings growth across the wider share market in 2025.

He comments:

REIT earnings are at an inflection point, having seen growth wiped out by rising debt costs over the past two years.

We expect sector earnings growth to turn positive this year and accelerate over the next two years, offering an attractive above-trend three-year EPS compound annual growth rate of 7.8 per cent or 4.4 per cent ex-GMG.

JPMorgan has an overweight rating on Vicinity Centres and Abacus Storage King (ASX: ASK).

Another broker, Citi, has buy ratings on Goodman, Stockland, Scentre, GPT Group, National Storage REIT (ASX: NSR), and Ingenia Communities Group (ASX: INA).

According to The Australian, CLSA has an overweight rating on ASX REITs.

Analysts Druce and Calvetti said:

We expect the residential sector to pick up again on rate cuts, after constant pressure on volumes and margins, from high construction costs, subcontractor delays and elevated interest costs.

Generally, we are more comfortable asset values have troughed. We see more devaluations in office, between 3 per cent to 5 per cent based on transactions in the market.

The post Which ASX REIT will pay the best dividend yield in 2025? appeared first on The Motley Fool Australia.

Real estate investment trusts (REITs) usually have a reasonably high level of debt on their balance sheets compared to other businesses. REITs typically fund some of their property investments with debt, so with interest rates now much higher than before, they're paying a lot more interest to lenders.

Higher interest rates are also a headwind for property valuations because they make the passive income returns offered by property seem less appealing compared to safe(r) investments like bonds and term deposits.

Share prices of ASX real estate shares like Centuria Industrial REIT (ASX: CIP), Charter Hall Long WALE REIT (ASX: CLW) and Rural Funds Group (ASX: RFF) have fallen by large double-digit declines (in percentage terms) and are now trading at significant discounts to their net asset values (NAVs).

Some experts believe now is the right time to examine the sector for opportunities.

JPMorgan is excited about ASX real estate shares

According to reporting by The Australian, JPMorgan thinks investors should increase their exposure to Australian REITs because interest rate cuts could lift earnings across the sector.

The broker assigned an overweight (buy) rating to several property names, including Vicinity Centres (ASX: VCX) and Abacus Storage King (ASX: ASK).  

JPMorgan analyst Richard Janes noted that 2024 saw a strong performance for Goodman Group (ASX: GMG), but it's neutral on that business now. The broker said:

In 2025, we believe portfolio outperformance will require a broader set of stock exposures. REIT earnings are at an inflection point, having seen growth wiped out by rising debt costs over the past two years.

We expect sector earnings growth to turn positive this year and accelerate over the next two years, offering an attractive above-trend three-year EPS compound annual growth rate of 7.8 per cent or 4.4 per cent ex-GMG.

Citi is bullish, too

The Australian reported that broker Citi also thinks ASX real estate shares could be a good pick in the current environment.

Some of Citi's picks in the sector include Goodman, National Storage REIT (ASX: NSR), Ingenia Communities Group (ASX: INA), Stockland Corporation Ltd (ASX: SGP), Scentre Group (ASX: SCG) and GPT Group (ASX: GPT).

Explaining Citi's bullishness about the sector, Citi analyst Howard Penny said:

Our outlook remains particularly strong for high-growth sub-sectors such as data-centres, retail, self-storage and land lease, where structural operational momentum continues to deliver robust returns.

We expect declining financing costs will provide additional tailwinds, supporting earnings growth across the broader sector.

However, we foresee a slower recovery in Australian office markets, where elevated vacancy rates and persistent tenant incentives are likely to delay a meaningful shift in the demand-supply dynamics.

Overall, things are looking more positive for the ASX real estate share sector.

The post Should you buy ASX real estate shares before interest rates start to fall? appeared first on The Motley Fool Australia.

Essentially, REITs are bricks and mortar in the form of an ASX equity. Neat, huh?

However, the ASX REITs provide a different type of exposure to property than Australian residential housing.

Most are invested in commercial and industrial property, and their assets are all over the world.

They include data centres, offices, malls, and specialist facilities like medical and child care centres.

Only a few ASX REITs are invested in Australian residential real estate.

They are typically apartment developers and managers like Mirvac Group (ASX: MGR) or seniors and aged care village developers and managers, such as Lifestyle Communities Ltd (ASX: LIC).

If you're considering an investment in shares vs. property and ASX REITs are in the mix, the following data may interest you.

Let's take a look at the 12-month returns of ASX REITs vs. ordinary Australian residential property in 2024.

ASX REITs vs. homes: Which delivered better returns overall?

ASX REITs delivered stronger returns than residential housing last year.

The S&P/ASX 200 A-REIT Index (ASX: XPJ) delivered capital growth of 12.36% and total gross returns (that's growth plus distributions or dividends) of 16.31% in 2024.

By comparison, Australian dwellings (that's all types of properties combined) delivered capital growth of 4.9% and total returns (including weekly rents) of 8.9%, according to CoreLogic data.

We can break that down further to look at houses vs. apartments.

Houses recorded capital growth of 5.2% and total returns of 9%.

Apartments (grouped together with other strata-titled properties like townhouses) had growth of 3.6% and total returns of 8.5%.

Shares vs. property: Now to the specifics…

It's important to point out that just as each ASX REIT is different, so are our residential housing markets.

If we break down the property data, we see a significant divergence in performance between the states and territories last year.

In a nutshell, Western Australia, South Australia, and Queensland were hot, and the rest were not.

Check out this table showing how house prices changed over 2024 in each of the cities and regions.

Source: CoreLogic

Now check out the share price growth of the top five ASX REITs by market capitalisation last year.

As you can see, there is a major divergence in share price growth between the five biggest ASX REITs.

The post Shares vs. property: How did ASX REITs perform compared to residential housing in 2024? appeared first on The Motley Fool Australia.

The leadership outfits of both Stockland Corp Ltd (ASX: SGP) and Vicinity Centres (ASX: VCX) are buying up shares, bullish actions amid a challenging property landscape.

With ASX real estate shares impacted by rising interest rates and market volatility, insider purchases like these could point to optimism in a company's future direction. Whether they are correct or not is a discussion between fate and economic reality.

Here's the insider moves for these stocks.

Directors buying ASX real estate shares

ASX real estate shares have had a mixed year so far in 2024. The S&P/ASX 200 Real Estate Index (ASX: XRE) tracks the sector, and is up 17% this year to date.

But most of this growth was obtained in the November 2023 – April 2024 period, when the broader market was rallying.

After nudging to new highs in September, it has retreated nearly 3% lower over the past month. That hasn't stopped directors of ASX real estate companies buying up stock in recent weeks.

Stockland director Tarun Gupta recently increased his stake in the company, picking up 203,864 ordinary shares and 699,660 performance rights.

These were obtained at $4.28 per share.

This acquisition comes on the heels of Stockland's push to strengthen its portfolio in residential and commercial properties.

Morgan Stanley rates the ASX real estate share a buy with a price target of $6.35. The broker sees Stockland as well-positioned to benefit once interest rates begin to stabilise and fall.

This could make it a prime candidate for dividend-seeking investors.

Vicinity Centres gains insider support

Vicinity Centres is another ASX real estate share that has also attracted insider buying this month.

Director Georgina Lynch recently acquired 83,937 Vicinity shares through an on-market transaction valued at roughly $182,983.

This vote of confidence arrives as Vicinity continues to rebound from pandemic-driven disruptions to its retail properties, with optimism growing around consumer foot traffic and retail spending.

Vicinity also announced the appointment of Angus McNaughton as new director on Tuesday. McNaughton is yet to declare any ownership in the company.

CLSA analysts were bullish on a rebound in the ASX real estate sector in a September note. The broker expects tailwinds from interest rate cuts and a pick-up in construction activity.

ASX real estate shares like Vicinity stand to benefit if this is the case, CLSA says.

Foolish takeout

When directors personally invest in ASX real estate shares like Stockland and Vicinity Centres, it can signal their belief in the company's growth trajectory.

But buyer beware – a detailed analysis of the company and underlying industry is also needed. Whilst insider transactions are tremendously helpful knowledge, they should never be relied upon as indicators to buy or sell a security yourself.

In the last 12 months, Stockland is up 45%, whereas Vicinity Centres has climbed 28%.

The post 2 ASX 200 real estate shares being bought up by directors appeared first on The Motley Fool Australia.

The S&P/ASX 200 A-REIT Index (ASX: XPJ) is having a good day on Thursday, up 1.43%. Real estate is the second-best performing sector today behind the S&P/ASX 200 Materials Index (ASX: XMJ), up 2.38%.

The benchmark S&P/ASX 200 Index (ASX: XJO) is up 0.62% to 8,192.9 points at the time of writing.

In earlier trading, the benchmark index hit a new record high of 8,186.9 points amid a 50-basis-point cut to United States interest rates and the release of new unemployment figures in Australia. This afternoon, the index notched another new record high of 8,200.3.

Over the past 12 months, ASX REITs have risen by 36.8%, while the ASX 200 has lifted by 14.3%.

The ASX property sector has had a rough few years amid higher interest rates and many changes.

The pandemic led to the downgrading of office real estate assets in the new work-from-home era, but there are signs of recovery now.

Data centres emerged as hot property amid the growing digital economy — turbocharged by COVID lockdown periods — and the rising use of artificial intelligence (AI) today.

Retail assets have faced headwinds, including reduced demand for retail space as more customers began shopping online and lower consumer spending amid higher inflation.

However, several analysts say change is underway for ASX REITs, and now might be the time to buy them.

'Clear inflection point' for ASX REITs, say analysts

In The Australian today, CLSA analysts James Druce and Adam Calvetti described a "clear inflection point" for ASX REITs following last month's earnings season.

This is based on expectations that US and Australian interest rates had peaked, as well as trough earnings for several REITs, including Dexus (ASX: DXS), Vicinity Centres (ASX: VCX) and Stockland Corporation Ltd (ASX: SGP).

They also said there were indications the transaction market was opening up as asset values stabilised.

They've put an overweight rating on the ASX REITs sector, commenting:

We expect the residential sector to pick up again on rate cuts, after constant pressure on volumes and margins, from high construction costs, subcontractor delays and elevated interest costs.

Generally, we are more comfortable asset values have troughed. We see more devaluations in office, between 3 per cent to 5 per cent based on transactions in the market.

Barrenjoey head of REITs research, Ben Brayshaw, is also optimistic about ASX REITs from here.

He notes that bank funding costs have eased, which is being passed on to REITs through lower margins.

He said while capitalisation rates, which are used to measure property values, have expanded 75 basis points since their peak, gearing ratios had stabilised for the first time in 18 months.

Brayshaw said:

This puts REITs in a more favourable light. Investors could be well served to increase their allocation to the sector, in our view.

He added:

Elevated levels of rate volatility and consensus earnings downgrades have largely kept investors on the sidelines over the last two years, not knowing when to catch a falling knife.

The cycle appears to have turned: average gearing levels stabilised this season, and credit conditions for REITs are starting to ease.

JPMorgan analyst Richard Jones said investors were showing new interest in ASX REITs.

Jones said:

We saw increased sector interest beyond the well-held Goodman Group (ASX: GMG) as investors positioned for global central bank easing and turned more defensive amidst negative earnings revisions across much of the ASX 200.

Pros and cons of investing in ASX REITs

As recently reported, Clive Maguchu from State Street Global Advisors says there are pros and cons to ASX REITs.

The pros include exposure to property without having to own physical real estate directly, as well as income generation, portfolio diversification, and liquidity.

State Street also considers ASX REITS an inflation hedge because real estate values have historically risen with inflation.

The cons include less potential capital growth, impacts from a property market and/or share market downturn, higher interest rates, and management risks.

The post Should ASX REITs be on your buy list right now? appeared first on The Motley Fool Australia.

The S&P/ASX 200 A-REIT Index (ASX: XPJ) finished down 0.028%, while the S&P/ASX 200 Index (ASX: XJO) finished up 0.30%.

Over the past 12 months, REITs have risen by 27.34%, while the ASX 200 has lifted by 11.40%.

If you're thinking of investing in REITs, Clive Maguchu from State Street Global Advisors has some advice.

But before we get to that, let's look at what the biggest players did today.

How did the major ASX REITs fare today?

Here is a snapshot of how the ASX REITs performed on Tuesday.

In order of descending market capitalisation:

• Goodman Group (ASX: GMG) shares finished down 0.21% to $33.36
• Scentre Group (ASX: SCG) shares finished down 0.28% to $3.54
• Stockland Corporation Ltd (ASX: SGP) shares finished up 0.19% to $5.21
• Vicinity Centres (ASX: VCX) shares finished down 0.44% to $2.28
• GPT Group (ASX: GPT) shares finished down 0.20% to $5.09.

Expert explains the pros of investing in ASX REITs

In an article published on asx.com.au, Maguchu said REITs allow investors to gain exposure to the commercial property market without directly owning physical real estate. 

Commercial property includes office towers, shopping malls, industrial warehouses, residential developments, and self-storage units.

The potential benefits of REITs include income generation, portfolio diversification, and liquidity.

On income generation, Maguchu explains:

The net income generated by A-REITs can potentially be consistent and predictable. It includes rental income from the properties held, less interest costs from borrowings.

To qualify for tax exemptions, A-REITs typically distribute the majority of their income to shareholders as dividends.

This makes A-REITs a potential option for income-focused investors as A-REITs have historically provided more income than shares …

Maguchu says ASX REITs provide diversification from ASX shares, bonds, and other asset classes.

This can lower overall portfolio risk because the performance of ASX REITS is less correlated to other asset classes, he said.

However, he notes that some REITs are only invested in one type of property, such as shopping centres, and investors need to take this into account if diversification is a priority.

REITs are also a cheap way to buy property and can be sold quickly, with access to funds within two days.

This compares to a typical four to six-week sales campaign and a six-week settlement period for physical property.

ASX REITs are also professionally managed, while physical property requires at least some input from the landlord.

State Street also considers them an inflation hedge because real estate values have historically risen with inflation.

Here are the risks of REITs

On the flip side, the risks of ASX REITs include impacts from a property market downturn, higher interest rates, and management risks.

Maguchu says economic downturns, an oversupply of properties, and falling rents can negatively impact REITs. Given that REITs use gearing to buy assets, they are also sensitive to rising or higher interest rates.

He says:

Rising interest rates can increase borrowing costs and make yield-focused investments like A-REITs less attractive, potentially reducing their unit prices. 

REIT values can be volatile, just like ASX shares, and can be influenced positively or negatively by the equity market's momentum.

They also offer less potential capital appreciation than physical property. This is because ASX REITs typically distribute the majority of their net rental income, leaving little funds for new investments.

Maguchu comments:

This, therefore, reduces the potential for capital growth except in the case of property market upturns.

Finally, while the professional management of REITs can be viewed as a benefit for investors, this is only the case if the managers are good at what they do!

Maguchu says:

Poor management decisions can lead to sub-optimal property purchases and leasing strategies in a competitive market.

The post Thinking about buying ASX REITs? Expert outlines the pros and cons appeared first on The Motley Fool Australia.

But it was a close finish with ASX financial shares ending the week with a similarly strong rise of 2.15%.

The benchmark S&P/ASX 200 Index (ASX: XJO) lifted 0.47% to finish at 8,091.9 points on Friday.

Five of the 11 market sectors finished the week in the green.

Let's review.

Property shares led the ASX sectors last week

The best performances among the larger ASX 200 real estate shares included a 4.32% lift for HMC Capital Ltd (ASX: HMC) shares, which finished the week at $8.46 apiece.

The Lendlease Group (ASX: LLC) share price rose by 3.52% to finish at $6.76. Vicinity Centres (ASX: VCX) shares lifted 3.02% to end the week at $2.22 per share.

Dexus (ASX: DXS) shares also rose strongly by 2.27% to close at $7.22 apiece. GPT Group (ASX: GPT) shares lifted 1.23% over the week and finished at $4.92 per share.

Shares in Westfield shopping malls owner Scentre Group (ASX: SCG) lifted by 0.73% to $3.44. Stockland Corporation Ltd (ASX: SGP) shares rose by 0.6% to finish the week at $5.02.

The sector's biggest company, Goodman Group (ASX: GMG), fell by 0.3% to close at $33.40 per share.

Charter Hall Group (ASX: CHC) shares also fell, losing 2.69% over the five trading days to $14.49 apiece.

Among ASX 200 financial shares, the major banks did well last week with sector leader Commonwealth Bank of Australia (ASX: CBA) clocking up a 1.41% gain to $139.50 per share.

The National Australia Bank Ltd (ASX: NAB) share price rose 3.12% to $38.17. Check out the bank's latest predictions for Australian property price growth in 2024 and 2025.

The Westpac Banking Corp (ASX: WBC) share price increased 3.48% to $31.24. The ANZ Group Holdings Ltd (ASX: ANZ) share price rose by 3.16% to $30.40.

Macquarie Group Ltd (ASX: MGC) shares ascended 2.02% to $215.65.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post Here's how the ASX 200 market sectors stacked up last week appeared first on The Motley Fool Australia.

This was a superior performance to the S&P/ASX 200 Index (ASX: XJO), which finished in the red by 0.7%. The benchmark closed the week at 7,971.6 points on Friday.

The ASX 200's loss for the week was ironic given it crashed through 8,000 points for the first time on Wednesday and set a new record high at 8,083.7.

Five of the 11 market sectors finished the week in the green.

Let's recap the week that was.

Property shares led the ASX sectors last week

Among the sector's big players, Goodman Group (ASX: GMG) shares rose by 3.67% to finish at $37.10 on Friday.

The industrial property and data centre specialist is riding the artificial intelligence (AI) market tailwind.

Goodman Group owns an $80.6 billion global portfolio of property assets. It has another $12.9 billion worth of real estate in the pipeline. About 40% of that pipeline is data centres which will power AI.

Goodman did not release any official news last week. It likely benefitted from ongoing speculation of a US interest rate cut given it is heavily invested there.

HMC Capital Ltd (ASX: HMC) shares ascended 3.03% to close out the week at $7.65 apiece.

The Lendlease Group (ASX: LLC) share price rose by 2.68% to finish at $6.13 on Friday.

Charter Hall Group (ASX: CHC) shares lifted 2.12% over the five trading days to finish at $12.55 per share.

Dexus (ASX: DXS) shares rose by 1.03% to close the session on Friday at $6.84 apiece. The ASX REIT announced two new executive appointments last week.

Scentre Group (ASX: SCG) shares lost 0.76% to finish at $3.25 on Friday. Stockland Corporation Ltd (ASX: SGP) shares lost 0.22% to finish the week at $4.51.

GPT Group (ASX: GPT) shares shed 0.46% over the week and finished at $4.36 per share. Vicinity Centres (ASX: VCX) lost 1.74% to end the week at $1.98 per share.

Top broker Macquarie is recommending that ASX investors go overweight on ASX REITs now.

As my colleague Zach reported, Macquarie's recommendation is driven by its insights into the shifting economic cycle and potential rate cuts.

The broker said ASX REITs tend to do well when interest rates fall. This is because investors start looking away from cash investments to ASX stocks for more attractive yields, and REITs have them to offer.

While we're on the subject, you can check out the six best-performing ASX REITs of FY24 here.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post Here's how the ASX 200 market sectors stacked up last week appeared first on The Motley Fool Australia.