The Australian REIT sector delivered a strong return in the first quarter of 2024, with a total return of 16.8 percent, outperforming the broader market, which saw a 5.3 percent return. The strong performance builds on a 16.6 percent total return in the final quarter of 2023. Across both periods, the property sector staged a strong recovery off the back of lowering inflation numbers, instilling expectations that the interest-rate cycle may have peaked and the next movement is likely to be downwards.

The strongest performers were Goodman Group (up 33.6 percent) and HMC Capital (up 17.7 percent), with all but four of the stocks in the table below recording positive returns. The returns delivered in the fourth quarter of 2023 and first quarter of 2024 represent the best-performing quarters for A-REITs in the past two years.

Dinesh Pillutla is managing director at Core Property Research, based in Sydney.