As well as providing access to high-quality companies, the Australian share market also offer investors the opportunity to invest in property through real estate investment trusts (REITs).
But which REITs would be good options in December? Let's see which ones analysts are recommending:
Image source: Getty Images
Charter Hall Retail REIT (ASX: CQR)
The Charter Hall Retail REIT offers ASX investors exposure primarily to the supermarket-anchored neighbourhood and sub-regional shopping centre markets in Australia.
Citi is very positive on the company. In response to a recent update, the broker has put a buy rating and $4.10 price target on its shares. It said:
Management highlighted that positive leasing spreads, high occupancy levels and MAT growth are expected to continue and that portfolio income is expected to benefit from direct and indirect inflation linked rental growth underpinning asset values.
Dividend yields of 8%+ are expected by Citi through to FY 2026.
Healthco Healthcare and Wellness REIT (ASX: HCW)
Another ASX REIT that has been given the thumbs up is the Healthco Healthcare and Wellness REIT.
Bell Potter likes the likes healthcare property-focused REIT and has a buy rating and a $1.75 price target on its shares. It believes the company is well-positioned for growth. It commented:
The company has doubled in asset size in the last 12 months, with a strong development pipeline with attractive yields on cost (+7%), and a low cost of capital where other externally managed REITs are unable to grow and at the behest of volatile 10yr bond yields / debt base rates. Healthcare real estate is highly fragmented and has a long runway domestically in Australia.
The broker also expects dividend yields of 5.7%+ in the coming years.
HomeCo Daily Needs REIT (ASX: HDN)
Finally, Morgans thinks that investors should be buying HomeCo Daily Needs REIT right now.
It has an add rating and a $1.37 price target on the daily needs focused property company's shares. It recently said:
HDN offers investors an attractive yield of +6% underpinned by contracted rental income and has a large development pipeline.
Morgans is forecasting dividend yields of 6.9%+ this year and next.
