Positive signs for the A-REIT market: SQM Research

A new individual rating of the 11 funds participating in SQM Research’s Domestic Property Securities Funds Review has revealed positive signs for the Australian real estate investment trust (A-REIT) market.

With eight of the funds receiving a four star or higher rating, SQM Research managing director Louis Christopher said there is a high calibre of funds in this year’s review.

Four funds were upgraded, one was downgraded and a further six remained unchanged from the last review.

Source: SQM Research, Note: Principal Property Securities Fund and Folkestone Maxim A-REIT Securities Fund were last reviewed in August 2012

“Contrary to a recent report from another research house, we see positive things in the A-REIT market,” said Christopher.

He noted that there are a number of active managers consistency outperforming the local A-REIT index, and that the market is not as overvalued as some may be suggesting.

“We still see opportunities for A-REITs over the next 12 months,” he said.

“Those generalist research houses that put equities based analysts in charge of real estate research should be careful in putting forward uninformed opinions," Christopher said.