The Australian REIT sector delivered a weak performance in the fourth quarter of 2024, with a total return of –6.0 percent, compared with the broader market, which delivered an –0.8 percent return. The pull back in prices was off the back of a very strong prior third quarter, where the A-REIT sector saw a 14.5 percent total return and the broader market recorded a 7.8 percent total return.

The strongest performer in the fourth quarter, HMC Capital (up 20.2 percent), benefitted from assets under management growth from the acquisition and listing of a data centre portfolio. GARDA Property Group (up 5.2 percent) also delivered a positive gain, while the rest of the sector experienced negative returns.

The market remains focused on guidance for inflation and interest rates in 2025 as it continues to search for stability.

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