BDO A-REIT Survey 2013
05 December 2013
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.