AREIT FY15 Reporting Season Insights and Highlights from APN Property

The Australian Real Estate Investment Trust (AREIT) reporting season was completed last month with most stocks reporting for the twelve months to 30 June 2015, with the exception of Scentre Group (SCG), Westfield Corporation (WFD) and GPT Group (GPT) who reported half financial year results.

As a historically low interest rate environment continued to underpin the “lower-for-longer” thesis, the stable high yield nature of the AREITs supported the sector’s relative popularity with investors as the search for risk-adjusted yield continued. This is reflected in the sector’s 12 month total return to 30 June 2015 of 20.2%.

Overall the full year results were strong with individual trusts either meeting or exceeding the earnings guidance released at the HY15.

Exceptional earnings growth, positive asset valuation uplifts and decreasing debt costs dominated the sector headlines. A level of improvement in underlying property fundamentals in major retail and commercial markets was also encouraging, which suggests the relative strength of the AREIT sector can continue into FY16.

In this month’s White Paper, we examine the trends from the FY15 reporting season and provide a snapshot of the key Australian property sectors in the AREIT market.

AREIT results in line with expectations.

To download the full document, please click on the link below.