GFC victims A-REITs to provide encore to stellar 2012 performance?

Financial journalist and commentator on 3AW and Sky Business
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Australian real estate investment trusts (A-REITs) were star performers last year, delivering a total return of 32.8% (S&P/ASX 300 A-REIT Accumulation Index) versus the market (S&P/ASX 300 Accumulation Index), on 19.7%.

More important even than performance, though, was the fact that after losing the plot in the GFC, the A-REIT sector is back doing what it is supposed to do – capturing rental cashflows and passing them on to investors.

The REIT sector was one of the biggest victims of the GFC, plunging 55% in 2008 alone: from the peak to the trough, the market value of the A-REITs index slumped by more than 70%.

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