By guest contributor Binesh Seetanah, Analyst, Atchison Consultants
Australian real estate investment trusts (AREITs) continue to provide relatively attractive yields in the current low interest rate environment. As at 30 November 2017, the average forecast earnings yield 1 was stable at 5.9%.
At the end of November, the earnings yields exceeded the 10-year Australian government bond yield by 3.3%. This is higher than the long term average of 2.7%. The premium over the bond yield increased by 0.2% during November 2017 reflecting a fall in 10-year Australian government bond yield.
Source: RBA, UBS (2017)
Forecast earnings yields by property sector over the next year are as follows.
