5 A-REITs to consider post the Westfield takeover

Financial journalist and commentator on 3AW and Sky Business
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As official interest rates have slid over the last decade, from 7.25% to a record low of 1.5%, and term deposit rates have more dropped from the 7%-plus levels, to average five-year territory of 2.6%, Australia’s real estate investment trust (REIT) sector has played an important role in yield-oriented portfolios.

According to specialist property investment consultancy Atchison Consultants, A-REITs are currently offering income yields in the region of 5.5%, unfranked.

After a bad experience in the GFC, when the A-REIT sector geared-up and went chasing non-core activities like property development, syndication, management and property services, the trusts are now back doing what they are supposed to do – passing on rental income to their unitholders. Thus, they are once again considered a sound defensive investment.

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