A-REIT returns in April rise to sixth best in 21 years: Goldman Sachs

Australian listed property trust sector returns to investors in April were the best monthly returns in over three-and-a-half years  and the sixth strongest monthly result since 1992, according to analysis by Goldman Sachs.

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The Woolworths proprety spin-off Shopping Centres Australasia (SCP) was the only REIT to post a negative return, "although with the highest yield of any REIT and the longest unexpired lease term by a large margin providing high earnings certainty" said Goldman Sachs analysts Simon Wheatley and Andrew MacFarlane.

The analysts said based on this, SCP represented an opportunity for investors.

The best performers were Federation Centres, Dexus, GPT and Charter Hal, which all recorded double digit price gains.

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"Interestingly there is no core theme amongst these four REITs.

"One is diversified, one shopping centre focused, one office focused and one funds management focused.

"Despite there being a yield demand theme during the month, these four REITs also were not the best yielders – they currently have prospective average yields of 5.0%, marginally below the sector average," says the report.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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