From VCX to NSR, SCP: How are these top REITs faring on ASX?

Highlights

• REITs invest in real estate properties and offer exposure to real estate assets such as buildings, shopping malls etc.
• REITs can be bought and sold through a broker in the same way as shares.
• They offer dual income: in terms of capital growth and revenue in form of regular distributions
• VCX, NSR, SCG, APZ are some of the best performing ASX-listed REITs in the last 52-weeks

REITs or real estate investment trusts invest in a broad range of real estate property types, including offices, retail centres, apartment buildings, warehouses, medical facilities, infrastructure, and hotels. Most REITs focus on a specific type of property, but some hold multiple types of properties in their portfolios.

On  ASX, there are Australian real estate investment trusts (A-REITs) that offer exposure to property assets such as buildings, shopping malls, office towers, hotels, and cinemas. 

Like managed funds, they are pooled investments managed by a professional manager. As they are listed on the ASX, one can buy and sell them through a broker in the same way as shares.

In this article, we at  Kalkine Media® will discuss some A-REITs and their recent updates.

Vicinity Centres (ASX:VCX)

Vicinity, a retail REIT, has appreciated by nearly 24.5% in the last 52-weeks. It is the second largest listed manager of Australian retail property with AU$23 billion in retail assets under management.

For the full year ended 30 June 2022, the Group’s statutory net profit after tax was AU$1,181.1 million, a rise of AU$1,437.9 million compared to the previous year. At the end of the period, the Group’s net assets were AU$10,980.9 million, up $967.2 million compared to last year.

National Storage Reit (ASX:NSR)

National Storage has 220 centres offering customised storage solutions to more than 85,000 residential and commercial customers. This ASX-listed company  is independent and internally managed. This was the first independent and fully integrated owner and operator of self-storage centres to be listed on the ASX. Shares of this REIT have gained nearly 9.3% in the last 52-weeks.

Key highlights of National Storage Reit  for FY22 are as follow:

• 46% surge in underlying earnings
• 7% rise in underlying earnings per share
• Completed 23 acquisitions worth AU$200 million
• A growth of 26% in total assets
• An increase of 24% in net tangible assets

Scentre Group (ASX:SCG)

Scentre Group has provided nearly 9.0% return to its investors in the last 52-weeks. Recently, the Group announced ordinary dividend distribution of AU$ 0.075 to its investors.

SCG owns and operates a distinguished range of living centres in Australia and New Zealand. The Group’s retail assets under management are valued at AU$50.4 billion, with its  ownership interests valued at AU$34.4 billion.

In the first quarter update (Jan to 31 March 2022), SCG witnessed significant growth in sales for business partners above pre-pandemic levels. There was a 12% higher customer visitation than in 2021, and portfolio occupancy was 98.7% at the end of March 2022. Further, the Group accomplished 536 lease deals during the period.

Aspen Group Ltd (ASX:APZ)

Aspen Group offers accommodation in residential, retirement, and short stay sectors. It has a portfolio of 18 properties worth more than AU$200 million. According to the Group, its estimated addressable market is worth over AU$1 trillion.

In the past three years, the Group’s s total assets have increased by AU$311million. During FY22, APZ’s operating earnings increased by 14% versus FY21. Similarly, its total revenue surged by 31% to AU$46.02 million. Operating and development Net Income increased by 25% to AU$18.34million.

Shares of Aspen Group have gained nearly 8.6% in the last 52-weeks.

Arena Reit No 1 (ASX:ARF)

Arena REIT develops, owns, and manages social infrastructure properties across Australia. Currently, the company has a portfolio of more than 250 social infrastructure properties under lease in the childcare and healthcare sectors. The shares of this company have gained nearly 8.4% in the last 52-weeks

Here’s the company’s 2022 annual results

• 102% increment in statutory net profit
• Net operating profit of AU$56 million, demonstrating 8.4% growth on FY21. It was backed by rent increments, development completions and acquisitions
• 32% growth in Net Asset Value (NAV) per security
• 2% growth in earnings per security (EPS)

Charter Hall Retail REIT (ASX:CQR)

CQR, which has a portfolio worth AU$4,010 million, invests in Australian supermarkets anchored convenience and convenience-plus shopping centres. The firm’s portfolio consists of convenience retail shopping centres and long WALE convenience properties in Australia as well as New Zealand. The stock value of CQR has appreciated by about 7.2% in the last 52-weeks.

Shopping Centres Australasia Property Group Ltd (ASX:SCP)

SCP owns a portfolio of shopping centres focused on retailing in different cities of Australia. As of 30 June 2022, SCP’s portfolio was worth AU$4,460.9 million and it comprised 91 assets under management.

The share value of SCP has gained nearly 5.2% in the last 52-weeks. Let us have a look at the performance of the Group during FY22

• Net Profit After Tax of AU$487.1million, a surge of 5.2%
• Acquisitions worth AU$347.5million
• Divestments worth AU$307.6million