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AREITs Mid-Year Outlook: BDO Comments

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

15 June 2020

The Australian Real Estate Investment Trust sector is facing a number of challenges as weaker macro-economic conditions impact asset classes in varied ways.

For the last 25 years, BDO Australia has released an annual Australian Real Estate Investment Trust (A-REIT) Survey which tracks the listed Australian property industry by ranking the S&P/ASX 200 A-REIT Index trusts based on key financial and investment indicators over the 2019 financial year.

BDO Australia’s Sebastian Stevens, Partner in Charge, Advisory (Corporate Finance) is the author of the annual report and has been looking closely at how the REITs are faring in the lead up to the end of the financial year.

“The REITs learned from the global financial crisis and have undertaken a number of strategies to assist them, including finding long-term and diversified tenants and tapping into cheaper capital,” he said.

“These qualities are shock absorbers.

“Warehouse and distribution centres have bounced back and continue to offer value because the accelerated take-up of retail online shopping happened far quicker than anyone could have imagined.

“Agile management will have to reinvent large suburban complexes into destinations that increasingly provide cinemas, restaurants, spas and other entertainment.”

Read Sebastian’s comments in the AFR Weekend at www.afr.com/companies/financial-services/niche-property-assets-defy-real-estate-doom-and-gloom-20200611-p551rf

*NB: AFR subscription required to access this content.