10 largest Australian REITs to watch
REITs, or real estate investment trusts, are companies that own or finance income-generating property assets, offering retail investors an easy and comparatively liquid way to gain exposure to the property sector.
REIT is an acronym for the term 'real estate investment trust' – a company that owns or finances a portfolio of property assets that generate income in the form of rent.
A-REITs: what you need to know
A REIT is akin to a mutual fund, in that it brings together funds supplied by multiple investors to channel towards income-generating assets. REITs differ from other types of investment funds, however, in confining themselves to real estate assets.
One of the chief advantages of REITs is that they provide small-scale retail investors with a quick and convenient means of acquiring exposure to the property market.
Real estate assets are generally large and illiquid, making it both costly and time-consuming for investors to acquire or dispose of them. With a REIT, however, investors can simply grab an equity stake in a company that holds or funds such real estate assets, giving them the ability to invest small sums in a tradable financial asset that is far more liquid than a house or an office complex.
Shares in most REITs are publicly traded on securities exchanges, making them highly liquid instruments that can be purchased and sold with ease.
The ease of investing in REITs has helped 'democratise' property investment by making it accessible to mom-and-pop investors. Prior to the launch of REITs in the US in the 1960s, investment in commercial real estate was considered the exclusive preserve of institutional investors and high-net-worth individuals.
Other advantages of REITs include professional management teams overseeing day-to-day property operations, consistently high occupancy rates of over 90%, and moderate gearing levels typically ranging between 10% and 30%.
While they confine themselves to real estate investment, REITs cover a broad range of property types, including residential apartments, hotels, healthcare facilities, office complexes, shopping centres and warehouses.
REITs also invest in infrastructure assets, including fibre cables, energy pipelines and cell towers.
REITs first emerged in the US in the 1960s, after Congress made an amendment to the Cigar Excise Tax Extension in 1960 that allowed investors to purchase shares in commercial real estate portfolios.
They first reached Australia's shores in 1971 with the launch of the General Property Trust. The REIT market saw rapid growth over subsequent decades, reaching $43 billion in 2002, before doubling over the following decade to $90 billion by 2012.
As of March 2023, the market capitalisation of REITs in Australia was $144.5 billion, according to figures from Statista.com. REITs in Australia are not confined to investment in domestic properties but are also permitted to take stakes in offshore real estate assets.
Here is a list of 10 of the largest REITs listed on the ASX, for those investors who hope to use them as a channel for gaining exposure to the property market both in Australia and abroad.
10 largest A-REITs to watch
Here is a list of 10 of the largest REITs listed on the ASX for those investors who hope to use them as a channel for gaining exposure to the property market in Australia and abroad.
The following A-REITs are not investment recommendations. They are simply the largest by market capitalisation on the ASX.
Remember, past performance is not an indicator of future returns.
Goodman Group (ASX: GMG)
Goodman Group is a leading integrated property group that operates globally, specialising in industrial property and business space. The company manages, develops, and owns logistics facilities and warehouses across Australia, New Zealand, Asia, Europe, the UK, and the Americas. Goodman Group's extensive portfolio and strategic locations support efficient distribution and supply chain operations, making it a key player in the industrial property sector.
The company's success can be attributed to its innovative property solutions and robust investment management platform, which deliver long-term returns for investors. Goodman Group's focus on sustainability and the development of AI data centres further enhances its appeal, offering growth opportunities in the evolving digital economy. Investors might find Goodman Group attractive due to its consistent performance, strategic asset locations, and commitment to sustainable development.
Goodland has a market capitalisation of $69.68 billion.
Unibail-Rodamco-Westfield (EPA: URW)
Unibail-Rodamco-Westfield is a global leader in commercial real estate, focusing on owning, developing, and managing premium retail destinations across Europe and the United States. The company operates some of the world’s most iconic shopping centres, combining retail, leisure, and entertainment experiences under one roof. With a strong portfolio of high-traffic urban locations, URW is well-positioned to capitalise on the growing demand for immersive, mixed-use retail environments.
URW’s success stems from its ability to adapt to evolving consumer trends, maintaining high occupancy rates and driving foot traffic through innovative concepts and premium offerings. For investors, the company offers exposure to a diversified portfolio of prime assets in key international cities, providing stable rental income and growth potential in a dynamic retail landscape. Its global scale and strong brand make it a compelling option for those seeking to invest in the future of retail real estate.
Goodland has a market capitalisation of $$17.53 billion.
Vicinity Centres (ASX: VCX)
Vicinity Centres is one of Australia's premier retail property groups, boasting a fully integrated asset management platform. With a portfolio valued at approximately $24 billion, Vicinity manages 60 shopping centres, making it the second-largest listed retail property manager in Australia. The company's assets include some of the country's most iconic retail destinations, providing a diverse and resilient income stream.
Vicinity Centres' success is driven by its strategic asset management and development capabilities, which enhance the value and performance of its properties. The company's focus on sustainability and innovation, such as integrating digital technologies and energy-efficient practices, positions it well for future growth. Vicinity Centres appeals to investors due to its strong market position, consistent returns, and commitment to sustainable and innovative property solutions.
Vicinity has a market capitalisation of $10.45 billion.
GPT Group (ASX: GPT)
GPT Group is a diversified property group that owns and manages a high-quality Australian retail, office, and logistics portfolio. With assets under management totalling $32.4 billion, GPT leverages its integrated real estate management platform to enhance returns through property development and funds management. The company’s strategic focus on prime locations and diversified asset classes ensures a stable and resilient income stream.
GPT Group’s success is underpinned by its robust asset management and development capabilities, which drive value creation and long-term growth. The company’s commitment to sustainability and innovation, including energy-efficient building practices and smart technology integration, makes it an attractive option for investors seeking stable returns and growth potential. Investors may be drawn to GPT Group due to its strong market position, consistent performance, and forward-thinking approach to property management.
GPT Group has a market capitalisation of $8.71 billion.
Mirvac Group (ASX: MGR)
Mirvac Group is a top 50 Australian Securities Exchange company renowned for its integrated asset creation and curation capabilities. Founded in 1972, Mirvac operates across the residential, office, industrial, and retail sectors, managing over $35 billion in assets. The company is also heavily involved in development, with a $12 billion commercial and mixed-use pipeline and a $17 billion residential pipeline, showcasing its extensive reach and influence in the property market.
Mirvac’s success stems from its commitment to sustainability and innovation, exemplified by its award-winning Hatch innovation program and ambitious sustainability strategy, "This Changes Everything". These initiatives not only enhance Mirvac’s reputation but also drive long-term value for investors. The company’s focus on creating extraordinary urban places and experiences makes it an attractive option for investors seeking stable returns and growth potential in the property sector.
Mirvac has a market capitalisation of $8.64 billion.
Dexus (ASX: DXS)
Dexus is a leading Australasian real asset group, managing a diverse portfolio of high-quality real estate and infrastructure assets valued at $54.5 billion. The company specialises in office, industrial, and healthcare properties, with a strong presence in major Australian cities. Dexus’ integrated approach to asset management, development, and funds management allows it to deliver consistent returns and value to its investors.
The company’s success is driven by its strategic asset management and development capabilities, which enhance the performance and value of its properties. At the same time, its commitment to sustainability and innovation, including energy-efficient practices and smart building technologies, positions it well for future growth. Investors may find Dexus appealing due to its robust portfolio, consistent performance, and forward-thinking approach to property management.
Dexus has a market capitalisation of $8.15 billion.
National Storage (ASX: NSR)
National Storage REIT is Australia’s first publicly listed, internally managed, and fully integrated owner and operator of self-storage centres. Established in 2013, the company manages over 200 storage centres across Australia and New Zealand, providing tailored storage solutions for personal, business, and commercial needs. National Storage’s extensive network and customer-centric approach have positioned it as a leader in the self-storage industry.
Its strategic acquisitions, innovative storage solutions, and robust operational management drive the company's success. Meanwhile, its focus on expanding its footprint and enhancing customer experience through digital platforms and value-added services makes it an attractive option for investing. Investors may find National Storage appealing due to its stable income streams, growth potential, and commitment to delivering high-quality storage solutions.
National Storage has a market capitalisation of $3.57 billion.
Charter Hall Long (ASX: CLW)
Charter Hall Long is an Australian Real Estate Investment Trust that provides investors with stable and secure income through long-term leases. The REIT invests in high-quality Australasian real estate assets, predominantly leased to corporate and government tenants. Managed by Charter Hall Group, one of Australia’s leading property investment and funds management groups, Charter Hall Long benefits from a diversified portfolio across office, industrial, retail, and social infrastructure sectors.
The success of Charter Hall Long is attributed to its strategic focus on long WALE (Weighted Average Lease Expiry) properties, which offer predictable and resilient income streams. The REIT’s commitment to high-quality tenants and long-term leases enhances its appeal to investors seeking stable returns and capital growth potential. Investors could find Charter Hall Long attractive due to its strong management, diversified asset base, and focus on secure, long-term income.
Charter Hall Long has a market capitalisation of $2.98 billion.
Region Group (ASX: RGN)
Region Group is an Australian REIT that owns and manages convenience-based retail centres. The company boasts a geographically diverse portfolio of 99 shopping centres across Australia, valued at approximately $4.821 billion. Region Group’s properties are strategically located to serve local communities, providing essential retail services and ensuring a stable income stream.
The success of Region Group can be attributed to its focus on non-discretionary retail tenants, which offer resilience in various economic conditions. Moreover, the company’s commitment to sustainable practices and community engagement further enhances its appeal. Investors might find Region Group attractive due to its consistent performance, strategic asset locations, and focus on essential retail services.
Region Group has a market capitalisation of $2.75 billion.
BWP Trust (ASX: BWP)
BWP Trust is a specialised real estate investment trust focused on owning and managing large-format retail properties across Australia. Established in 1998, the Trust’s portfolio predominantly consists of Bunnings Warehouses, leased to Bunnings Group Limited, a leading retailer in home improvement and outdoor living products. This strategic alignment with Bunnings ensures a stable and reliable income stream, bolstered by long-term leases and high occupancy rates.
The success of BWP Trust can be attributed to its focused investment strategy and strong tenant relationships. The Trust’s properties are typically located in high-visibility areas with easy access to major roads, enhancing their appeal and value. Investors might find BWP Trust attractive due to its consistent performance, strategic property locations, and the stability provided by its long-term leases with a reputable tenant like Bunnings.
BWP Trust has a market capitalisation of $2.71 billion.
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