The Australian market experienced a volatile first quarter of 2026. Much like other global markets, the sector suffered large losses in late February and March following the US attacks in Iran and the consequential effects on the world economy. During the quarter, the A-REIT sector suffered a –16.6 percent return, against the broader Australian market, which delivered a –1.6 percent return. The impact of the war, combined with higher inflation numbers, resulted in two interest rate rises of 0.25 percent each, with the Reserve Bank of Australia’s (RBA) cash rate ending the quarter at 4.10 percent.
The A-REIT stocks in the table all delivered negative returns, particularly for fund managers — HMC Capital (–39.4 percent), Charter Hall Group (–23.8 percent) and Centuria Capital (–21.5 percent).
The market remains cautious given the potential effect the war is expected to have on inflation. Inflation in Australia sat at 3.7 percent in February 2026, with the R
