Australia real estate investment trusts (AREITs) returned 2.2% in the month of June 2018, marginally underperforming the S&P/ASX 200, which returned 3.3% in the same period.
On a 12-month basis, the return of the AREIT sector was 13.0%. FY18 was characterised by a continuing increase in asset values, in particular Sydney and Melbourne office, and M&A activity in the sector. The takeover by Uniball-Rodamco of Westfield has released $7 billion cash to investors which is likely to deliver a major cash injection back into the AREITs market.
Sector Performance
Table 1 below shows the performance of the AREIT sector for various periods ending 30 June 2018.
AREITs have recovered from the sell-off of global equities which occurred earlier this year. The total return over the 3 months was 10.0%.
Table 2 below shows the income performance of AREITs for various periods ending 30 June 2018.
