The S&P/ASX200 A-REIT Index (ASX: XPJ) is up nearly 1% this week after robust gains from several of the big-name real estate investment trusts (REITs) on the market.
Which REITs have driven the gains this week?
In terms of the big players, the Scentre Group (ASX: SCG) security price climbed 2% this week while the DEXUS Property Group (ASX: DXS) security price rose 1% as the company provided an update on its $425 million exchangeable notes offering.
The Mirvac Group (ASX: MGR) security price has risen 1.3% today alone to retrace its losses and close the week out broadly unchanged at $2.74 per security.
In the retail REIT space, Stockland Corporation Ltd (ASX: SGP) is marginally lower this week following the REIT's $143 million retail divestment as headwinds continue to build for Australian retail.
The Centuria Metropolitan REIT (ASX: CMA) yesterday confirmed a quarterly distribution of 4.358 cents per unit (cpu) to be paid on 29 April 2019, while the Centuria Industrial REIT (ASX: CIP) confirmed a 4.6 cpu distribution and the activation of a Distribution Reinvestment Plan (DRP). On a pro-forma basis, this would translate into annualised distribution yields of 7.36% and 5.79%, respectively.
Also updating the market yesterday was Charter Hall Long WALE REIT (ASX: CLW), which announced a 6.90 distribution per security (pro-forma 5.97% p.a. yield).
How have Australian REITs been performing so far this year?
The Centuria Metropolitan REIT unit price is up 6.4% so far this year to just trail both the Centuria Industrial REIT (+10.2%) and Charter Hall Long WALE REIT (+10.9%).
Mirvac has been a standout performer as its security price has climbed 23.2% year-to-date (YTD) to outpace fellow strong performers DEXUS (+19.8% YTD) and Goodman (+25.7% YTD).
Amongst the retail REITs, Stockland (+10.0% YTD) has been the pick of the REITs, outperforming Scentre (+6.0% YTD), Vicinity Centres Re Ltd (ASX: VCX) and Shopping Centres Australia Property Group Re Ltd (ASX: SCP) which are up 1.6% YTD and 0.4%, respectively.
While REITs can provide higher than average yields and a more defensive option in the case of commercial REITs, those seeking capital gains should check out these top growth shares instead.
