BDO A-REIT Survey 2013

05 December 2013

Sebastian Stevens , National Leader, Private Equity
Partner, Corporate Finance

From the composition of asset portfolios through to gearing levels and debt books, Australian Real Estate Investment Trust (A-REIT) managers have regrouped, restructured and reinvented their trusts.

With a renewed focus on maximising rental income, and adopting a far lower risk profile, most entities in the sector have done far better than simply recover. This year's A-REIT Survey highlights that the allure of the A-REIT is stronger than ever.

The BDO A-REIT Survey 2013, which covers the 12 month period ended 30 June 2013, provides an in-depth analysis of the financial and operating performance of entities within the sector, as listed on the Australian Securities Exchange.

Key report findings

  • The sector for FY13 was categorised by strong returns, averaging a 24% return
  • Lower interest rates have reduced funding costs and led to better earnings
  • Balance sheets have continued to improve, with gearing falling across the sector to approximately 30% and at far more moderate levels than three years ago
  • There has been an increased demand for longer-dated debt from corporate bond investors and banks
  • Distribution yields are lower, falling from 6.9% in FY12 to 6.1% in FY13, but are still very attractive
  • Property values have remained stable.


Download BDO's A-REIT Survey 2013

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