Australian Real Estate Investment Trusts (A-REITs)

A-REITs are unitised portfolio of property assets, listed on the Australian stock exchange. In Australia, such investment structures were known as listed property trusts prior to March 2008 but were renamed to be more consistent with international terms.

What are the benefits of investing in A-REITs?

1. Capital Growth

Over the long term A-REITs are generally expected to produce higher returns than fixed interest investments and cash.

2. Risk and income

In terms of risk, A-REITs are expected to be less volatile than share investments. This is because A-REITs provide a high degree of their total return as income, whereas most equities provide the bulk of their return as capital growth. Traditionally income returns are less volatile than capital growth returns, particularly in a sector such as property where income has a reasonable level of predictability in terms of leasing contracts held.

3. Diversification

In a portfolio sense the addition of A-REITs to an investor’s portfolio provides diversification, with the potential to reduce the riskiness or volatility of the portfolio without significantly reducing returns.

4. ASX Requirements

A-REITs are listed on the ASX and as a result must conform to the rules of disclosure and other such ASX requirements such as increased transparency and accountability.

5. Non-residential alternative

Unitising the assets in A-REITs allows the retail market (mums and dads) to access the returns from the non-residential markets e.g. shopping malls and office blocks etc.

Partner with Logical

Simply complete the form below and a member of our team will get in touch within 24 hours.

    Contact Us

    We're not around right now. But you can send us an email and we'll get back to you, asap.

    Start typing and press Enter to search