Retail REITs are ground zero for pain in the Real Estate space in the current social distancing environment. With only essential worker traveling means other than specific retailers (chemist & supermarkets etc) most of the shops are closed. With no revenue, landlords are feeling the flow on pressure when retailers who are not able to […]
Real Estate Investment Trusts (REIT) aims to provide investors a consistent dividend income stream. In investing, past performance is not an indicator of future performance. The nature of assets held by REITs and the lease income stream it provides present some consistency in cashflows. The REIT dividend yields on offer by the REITs are the main reason why they are so popular with retail mom and dad investors.
However, not all REITs are created equal, and there can be considerable risks in investing in the REIT with the highest dividend. We look under the hood of some of the most well known and largest Australian REITs to see what makes up their rental income stream, the key risks from owning the underlying assets, and what could cause the changes in their dividend policy as well as their dividend histories.
One of the most interesting findings from our research is that while investors love the dividend from REITs. Capital appreciation makes up a large portion of long term REIT returns as well. Investors in the sector have seen the value of their holdings appreciate markedly following the most recent bull market in commercial property value. Still, this is looking more and more unlikely to be repeated in the post Covid market cycle.
ALE Property Group – We see ASX:LEP share price fully priced
Investment thesis LEP reported FY16 results came inline with market expectations. LEP owns a portfolio of hospitality assets (pubs) leased solely to Australia Leisure and Hospitality. The trust was a spin off from Woolworths (similar to Hotel Property Investments – HPI from Coles) all assets are on long term leases which ensure that the underlying business has […]
Vicinity (ASX VCX) – Hitting the guidance?
Vicinity is the result of Federation Centers merger with Novion property group. The combined group has $14.5 billion retail assets across regional, neighborhood and outlets and became the 2nd largest retail REIT after Westfield (WFD) and Scentre. We keep an eye on these retail REITs as they give a good look through to underlying consumer spending […]
Viva Energy REIT – Long term income priced to perfection
Listed real estate trusts is one of the largest industry sector on the Australia Stock Exchange. There are a number of ways to invest in the the Australia institutional grade real estate assets where market depth is second only to United States, United Kingdom and Japan. Examples of funds investing across institutional grade real estate asset classes include […]
Mirvac Dividend – Keep them coming (MGR ASX)
It is our house view that the house prices in Sydney and Melbourne are growing at a unsustainable rate. We are generally cautious on the Australian real estate sector however the given the RBA rate cuts, we are changing our view that Australia house prices are set for a hard landing. The weak inflation rate has given […]
Dexus and Investa Merger- The Final Stretch
Dexus Dividend Dates 2017 Interim Ex-Dividend Date: 29/12/2016 Interim Record Date: 30/12/2016 Interim Dividend Payment Date: 28/2/2016 Final Ex-Dividend Date: 29/6/2017 Final Record Date: 30/6/2017 Final Dividend Payment Date: End of August Dexus Dividend Dates 2018 (expected) Interim Ex-Dividend Date: 28/12/2017 Interim Record Date: 29/12/2017 Interim Dividend Payment Date: 28/2/2018 Previous Note on Dexus and […]
Westfield Share Price and Dividends
Westfield (ASX WFD) is the largest listed REIT on the ASX. Its brand has become synonymous with medium and high end retailing destination. In 2015 it split itself between the Australian shopping center portfolio called Scentre (ASX SCG) and its international portfolio kept its main brand. Similar to any company with predictable dividend yield. WFD share price has […]
Australian Real Estate Investment Trust (A-REIT and Listed Property Trusts)
Australian investors love investing in property, and REITs is one of the most accessible means for individual investors looking for income and gain commercial real estate exposure. Real estate makes up a large portion of the listed ASX market with the combined market capitalization of the Australia Real Estate Investment Trusts (AREIT) or Listed Property Trusts […]