REIT Report: What's happening with A-REITs this week?

Scentre Group (ASX: SCG) shares are down 5% this week

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 A-REIT Index (Index:^AXPJ) (ASX: XPJ) has fallen again this week, down about 1.4% over last week's levels. A-REITs (or Australian Real Estate Investment Trusts) continue to enjoy record year-to-date gains, however, with the XPJ index still up over 20% in 2019 so far.

Let's check out what the big ASX REITs have been doing over the last week

Goodman Group (ASX: GMG)

As the biggest REIT in the index at an 18% weighting, Goodman often sets the tone for the sector, and with GMG down for the week, its no surprise the index is also down. Goodman is trading for $15.22 at close today, down 1.3% over last week's levels, but with Goodman up over 42% for the year, investors don't have a lot to complain about with this one.

Scentre Group (ASX: SCG)

Scentre is also down for the week, with Scentre shares closing at $3.85 today, down roughly 5% week-to-date despite no real news coming out about the Westfield REIT. Coincidentally, Scentre is now almost exactly the same price it started 2019 at. Scentre has a 17% weighting in the XPJ index and is yielding 5.64% on current prices.

Stockland Corporation Ltd (ASX: SGP)

With a 9% weighting on the index, Stockland is one of the more diversified REITs on the ASX, with the company claiming retirement villages, shopping centres and industrial parks to its name. Stockland shares are up 4% for the week, possibly due to the recent ex-dividend dip being forgotten about. Stockland is now up around 34% for the year so far and SGP shares are yielding a 5.99% dividend on current prices.

Rural Funds Group (ASX: RFF)

Although a small fry by comparison to others, I've thrown RFF in this week as this agricultural REIT has been making gains over the past few months. RFF specialises in leasing farmland used to grow cattle, cotton, chickens and other agricultural goods. RFF shares have risen almost 11% in 2019 so far and currently pay a yield of 4.04%.

Foolish Takeaway

This week has seen some mildly-wild fluctuations as REITs across the index have done some adjusting. I continue to expect general price rises over the  coming weeks as more and more investors chase the yields that REITs provide

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia has recommended Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on REITs

Group of successful real estate agents standing in building and looking at tablet.
Dividend Investing

1 ASX dividend stock down 25% to buy right now

I think this income business is a compelling buy right now.

Read more »

a cute jack russell dog closes its eyes and yawns as if waking up from a long sleep underneath a doona cover next to a pair of feet with an old-fashioned alarm clock nearby.
REITs

Get paid like clockwork with this 6% Australian dividend stock

Investors can harvest good cash flow with this stock.

Read more »

a man with hands in pockets and a serious look on his face stares out of an office window onto a landscape of highrise office buildings in an urban landscape
REITs

Is it time to grab these cheap ASX 300 stocks before it's too late?

Here’s why these ASX shares seem very cheap in my view.

Read more »

Group of successful real estate agents standing in building and looking at tablet.
Opinions

Should ASX REITs be on your buy list right now?

Analysts offer their views.

Read more »

An older couple dance in their living room as they enjoy their retirement funded by ASX dividends
REITs

Why I think this could be the #1 ASX property stock for retirement

I believe this stock is offering everything that retirees could want.

Read more »

Boys making faces and flexing.
REITs

These 3 ASX index-beaters are setting new records today (I'd still buy)

I think these stocks still have plenty of growth potential.

Read more »

A business woman flexes her muscles overlooking a city scape below.
REITs

Why ASX property shares could be set for a comeback

The recovery could be strong, too, according to one global investment giant.

Read more »

An Australian farmer wearing a beaten-up akubra hat and work shirt leans on a fence with livestock in the background and a blue sky above.
REITs

Why I'm more bullish than ever on this ASX 300 dividend stock

This is a leading passive income share, in my opinion.

Read more »