Macquarie Group Ltd (ASX: MQG) had a conference in Sydney this morning and various companies presenting took the opportunity to provide a market update on their performance.
These four REITs provided the following market updates:
Mirvac Group (ASX: MGR)
Mirvac is continuing with its urban strategy targeting population growth in Sydney and Melbourne. Occupancy in its office and industrial sectors is above 97% and they anticipate vacancy rates to decrease further in the major CBDs. The retail portfolio of Mirvac is also benefiting from this approach due to higher incomes and population density in these areas.
Mirvac reaffirmed its FY 18 guidance of 6%- 8% profit growth.
Charter Hall Retail REIT (ASX: CQR)
Charter Hall reported moving annual turnover growth from its supermarket anchor tenants and an occupancy rate of 98%. The REIT also bought back $3.05 million worth of units at $3.80 per unit during the quarter and maintained its FY 18 earnings guidance of 30 cents per unit.
DEXUS Property Group (ASX: DXS)
Dexus again highlighted their major presence in Australian CBDs which are experiencing high population growth. Progress made in acquiring and developing new properties has led them to maintain their FY 18 guidance of 5% growth in distribution per security.
Investa Office Fund (ASX: IOF)
IOF announced new Sydney leasing deals with Australia and New Zealand Banking Group (ASX: ANZ) and Nokia. The Fund also emphasized that the Sydney CBD office market was entering a multi-year strong cycle due to constrained supply and low vacancy rates.
Foolish Takeaway
Based on the presentations made, it appears that these REITs remain quite confident about their performance going forward despite potential headwinds from rising interest rates.
I think that industry performance will be varied with the better managers that have higher quality assets in premium locations outperforming the rest.
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