BDO A-REIT Survey 2015

25 November 2015

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

A-REITs going from strength to strength in 2015

Australian real estate investment trusts (A-REITs) have delivered a strong performance in the 12 months to 30 June 2015, up 9.2% on last year’s annual returns, to 20.2%.

BDO’s 21st annual A-REIT Survey has examined and ranked the performance of A-REITs, and looked at why the sector is currently delivering such strong returns.

ALE Property Group, which owns 86 pub properties across Australia, ranked highest in this year’s survey, followed by Brisbane-based self-storage centre owner and operator National Storage REIT (which moved up from 19th place in FY14) and Australia’s largest listed property trust Westfield Corporation.

BDO credits earnings growth, asset valuation gains and low cost of debt driven by the current low interest rate environment as key factors to recent success.

As competition for quality assets continues from both domestic and offshore markets, consolidation is likely to remain the favoured strategy by A-REITs looking to strengthen their portfolios.

There will be challenges ahead for trusts looking to remain sufficiently conservative despite the temptation of the low interest rate environment, in order to protect their long term stability and safeguard against an increased cost of debt.

Read the 2015 BDO A-REIT Survey and insights from senior management of the top performing A-REITS.


If you have any questions relating to the 2015 BDO A-REIT Survey, please contact your local BDO Corporate Finance adviser.