BDO A-REIT Survey 2012

06 December 2012

The annual BDO A-REIT Survey has now been finalised by the Corporate Finance Team. In its 18th edition, the 2012 Survey covers the 12 month period ending 30 June 2012.

This past year, the A-REIT sector has recorded an 11% total return and outperformed the broader market, following a long period of underperformance.

The survey found that the major A-REIT’s are well positioned to withstand any future economic downturn, and should perform strongly if and when a sustained property recovery eventuates.

At the smaller end of the spectrum, a number of A-REIT’s have yet to adequately resolve issues around gearing and underperforming assets. These A-REIT’s will continue to be subject to investor uncertainty and remain marked down by the market.
Key findings for this year include:

  • 29 of 36 entities surveyed recorded a positive total return for the year
  • The Property Index outperformed the All Ordinaries by 18% in FY12
  • Volatility of the Property Index lower than the All Ordinaries at 30 June 2012
  • Average increase in property values of 0.5%
  • Entities are still on average trading at a discount to NTA (22%) but this discount has decreased since 2011 (23%) and 2010 (32%).

If you have any questions relating to the BDO A-REIT Survey, please contact your local Corporate Finance adviser.