Listed A-REITs outperform domestic equities as vaccine rollout accelerates commercial property recovery

7 Dec 2021

Despite COVID-19 Delta outbreaks and a wave of new lockdowns in the third quarter of 2021, investor confidence has soared across listed, unlisted and direct property assets, with rising vaccinations, continued fiscal support, and corporate earnings growth accelerating recovery.

In the three months ending 30 September 2021, listed property topped the charts among property asset classes, according to data released by Zenith Investment Partners, Australian Unity, MSCI, the Property Funds Association and the Property Council of Australia.

As at 30 September 2021, A-REITs delivered a 12-month return of 32.6%, outperforming Australian equities at 31.3%.

Dan Cave, Senior Investment Analyst, Zenith Investment Partners, said figures from the latest quarter shows a healthy recovery across commercial property asset classes which, against a backdrop of lockdowns and a slow vaccine rollout, was encouraging.

“Despite the wave of lockdowns as a result of the Delta variant in Q3, it is very pleasing to see the high vaccine uptake and promise of a return to business as usual accelerating growth across listed, unlisted and direct property,” Mr Cave said.

“While last quarter saw listed property matching returns of Australian equities, we have now seen A-REITs overtake domestic equities, thanks to the strong third quarter performance of this asset class. This is a clear sign of local and global investor confidence as Australia comes out of lockdown."

For more information, view the quarterly fact sheet.  

About the Quarterly Property Investment Fact Sheet

The Property Investment Fact Sheet is an independent perspective of the risks and rewards of property compared to other asset classes such as equities. Zenith Investment Partners, MSCI, the Property Funds Association and the Property Council of Australia issue the Property Investment Fact Sheet each quarter. All data is sourced from MSCI, an independent global provider of research-driven insights and tools for institutional investors. Commentary is provided by Zenith Investment Partners.

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