The Australian Real Estate Investment Trust (AREIT) reporting season for the 6 months to 31 December 2012 demonstrated that AREITs are back in expansion mode - securities are priced around net tangible asset (NTA) value, debt costs are low and balance sheets are in check.
The sector finished the year on a high delivering an outstanding total return of 33% for the 12 months to 31 December 2012, outperforming the broader equities market by 13.1% over the period, making 2012 the bets year for the AREIT sector since 2002.
Whilst the AREIT sector still faces a challenging global economic environment, healthy balance sheets, high occupancy rates, rental growth and quality assets are supportive of an attractive commercial real estate outlook.
Indices:
The Australian All Ordinaries Index has moved down decreasing -149 points (or -2.9%) since closing last Friday to 02:00 pm today.
The rest of the world as measured by the MSCI index decreased -1 point (or -0.3%) in A$ from closing last Friday to end of trade Thursday.
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