In May, the Australia real estate investment trust (AREITs) index achieved its best performance in five months. AREITs returned 3.1% in the month, thus outperforming the S&P/ASX 200 index by 2.0%.
On a 12-month basis, the return of the AREIT index rebounded to 5.3%, a significant increase over last month’s comparable figure of 1.0%.
Sector Performance
Table 1 below shows the performance of the AREIT market for periods ending 31 May 2018.
Table 1
Source: S&P/ASX 200 AREIT Accumulation Index (2018)
The AREIT sector has recovered after being dragged down during the sell-off of global equities earlier this year. The total return over the past 3 months rose from 1.1% at the end of April to 7.8% at the end of May. On a 6 month-basis, the total return for the sector fell from 3.2% at the end of April to 1.0% at the end of May while the total return over the past year increased from 1.0% at the end of April to 5.3% at the end of May.
Table 2 below shows the income performance of the AREIT sector for periods ending 31 May 2018.
Table 2
Source: S&P/ASX 200 AREIT Accumulation Index (2018)
2.3% annual volatility for any asset class is considered to be low.