By guest contributor Atchison Consultants
Institutional and retail investors are still seeking investments with higher yields, other than the traditional fixed income asset classes amidst the current low interest environment and expectations. Australian real estate investment trusts (AREITs) has been one of the asset classes which have been offering attractive yields over the last few years
As at 31 January 2017, the yield spread for the AREIT sector above the 10-year government bond yield was 3.1%. This is higher than long term average spread (15 years to 31 January 2017) of 2.7%. Yield spread has fallen by close to 70bps over the month of December 2016 and January 2017 attributable mainly to a rise of approximately 30bps in the 10-year bond government bond yield.
