A-REIT Survey 2023

October 11, 2024

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In FY23, the Australian economy grappled with subdued market conditions, high inflation, and significant surges in the cash rate. Australia’s Real Estate Investment Trusts (A-REITs) were susceptible to these challenges and experienced notable fluctuations in their returns throughout FY23.

While A-REITs delivered a positive return of 3.1 per cent, a significant improvement from FY22’s negative return of 15.4 per cent, it remains a stark contrast to FY21’s remarkable positive return of 31 per cent.

A-REIT Survey 2023

This survey explores the dynamic listed Australian property industry by ranking the S&P/ASX 200 A-REIT Index trusts based on key financial and investment indicators over the 2023 financial year.

This year’s A-REIT Survey uncovered pockets of strength across the sector, with three key themes:

Alternative real estate assets are becoming the cornerstone for profits
Stronger REITs are capitalising on higher borrowing costs to acquire undervalued assets
A-REITs are walking the line between conflicting investor mandates.

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Performance overview

The S&P/ASX A-REIT 200 Index returned 3.1 per cent in FY23, underperforming the broader market index (ASX 200 Index) by 6.6 per cent by year end.

S&P/ASX A-REIT 200 Accumulation Index VS S&P/ASX 200 Index

All categories outperformed their FY22 result in FY23, and although industrial and diversified produced positive returns, both the office and retail categories had negative returns.

2023 A-REIT sector price returns

FY 23 Top 10 A-REITS

Every year, BDO in Australia provides a ranking of the top ten best-performing A-REITs. For more information about our ranking method, download the report or read our method summary.

01

Goodman Group

7 per cent operating cash yield
9 per cent increase in NTA
14 per cent one-year return
41 per cent three-year return
29 per cent liquidity.
02

Aspen Group

12 per cent increase in NTA
24 per cent one-year return
97 per cent three-year return.
03

Waypoint REIT

19 per cent one-year return
11 per cent three-year return
37 per cent liquidity.
04

National Storage REIT

6 per cent increase in NTA
15 per cent one-year return
43 per cent three-year return.
05

Charter Hall Group

10 per cent operating cash yield
71 per cent premium to NTA
25 per cent three-year return.
06

Scentre Group

39 per cent three-year return
8 per cent one-year return
95 per cent tax advantaged distribution.
07

Stockland

19 per cent one-year return
45 per cent three-year return
35 per cent liquidity.
08

Vicinity Centres

6 per cent operating cash yield
33 per cent liquidity
7 per cent one year return.
09

The GPT Group

35 per cent liquidity
100 per cent tax advantaged distribution
4 per cent one-year return.
10

Charter Hall Long Wale REIT

33 per cent liquidity
100 per cent tax advantaged distribution
7 per cent distribution return.

The Australian REIT market is remarkable and even in the darkest of times, it always finds a way to innovate, uncover a new niche, or explore an opportunity that others haven’t yet considered.

Sebastian StevensNational Leader, Private Equity & Partner, Corporate Finance

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