BDO A-REIT Survey 2020
Welcome to BDO Australia’s 26th Annual Survey of Australian Real Estate Investment Trusts
A year like no other. The fallout of the COVID-19 pandemic on the local economy has impacted the yearly results of the Australian Real Estate Investment Trusts (A-REITs).
This survey tracks the dynamic listed Australian property industry by ranking the S&P/ASX 200 A-REIT Index Trusts based on key financial and investment indicators over the 2020 financial year.
This year, the financial impact of COVID-19 has been challenging some A-REITs to deliver on their usual strong performance. It’s certainly a case of not all A-REITs being created equal, with the impacts varying across the three main market sectors: retail; office; and industrial.
This survey uncovers three key themes:
- What effect will the WFH movement have on offices?
- Where to from here for retail?
- Sheds still a rising star.
Category performance overview
The Industrial category delivered the only positive return over the 12 months to 30 June 2020, generating 1.4 per cent (FY19: 56.2 per cent). The Retail category was the poorest performing, delivering a -36.5 per cent return (FY19: -12.7 per cent).
2020 A-REIT Sector Price Returns
S&P/ ASX A-REIT 200 Accumulation Index VS S&P 200 Index
Responding to COVID-19
One of the top performers, Charter Hall Group says the move to bring people back to the office as soon as practically possible gave them an edge against others who were slow to return, with the benefits of collaboration and culture evident in their performance. They also went back to basics:
“We’ve also been very focused on the basics – collecting rent, signing leases and engaging with our tenants. That focus on working as a team and partnering with our tenants has been the key to the way we have navigated this year.”
– Charter Hall, Philip Cheetham, Head of Listed Investor Relations
For BWP Trust, a strong balance and a good property leased to Bunnings and other national retailers put them in an excellent position to respond to the challenges of COVID-19.
“During FY20 Bunnings was able to operate on an unrestricted basis (in terms of COVID-19) from all the properties leased from the Trust, as were the significant majority of the Trust’s other tenants.”
– - BWP Trust, Michael Wedgwood, Managing Director
For more information, download the report.
National Leader, Private Equity