The Australian REIT sector has experienced a stellar month of April to date, up 5.3% so far, driven by strength across leading securities

Tim Hannon

Newgate Capital Partners

The Australian REIT sector has experienced a stellar month of April to date, up 5.3% so far, driven by strength across leading securities. Over April, Westfield Group is up 6.3%, Westfield Retail up 6.4% and General Property Trust up 6.8%. We attribute market strength to falling bond yields on the back of weak inflation data which implies interest rates are on hold in the short term. We expect some catch up in lagging names such as Growthpoint Australia and Australian Industrial REIT, both which have delivered flat performance for the month. Both of these REITs own industrial assets and are yielding 7.5% and 8.5% respectively, well above that of the broader AREIT sector. Disclosure: Freehold Funds own interests in the securities mentioned. (VIEW LINK)


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Tim Hannon
Principal
Newgate Capital Partners

Tim has 22 years’ experience in the investment and securities markets. Tim was a partner of Goldman Sachs JBWere and during his 15-year tenure at the firm had senior experience across all areas of equities investing. Tim was Head of Australian...

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