- June 1, 2022: Vol. 14, Number 6

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A-REITs retract in Q1 2022

by Dinesh Pillutla

The Australian REIT sector weakened in the first quarter of 2022, with a –7.1 percent total return, compared with the broader S&P/ASX 200 Total Return Index, which was up 2.2 percent. The weak performance in A-REITs was reflective of the weakness across global markets being impacted by interest-rate concerns. Australian bond yields more than doubled over inflationary concerns, coupled with the war in the Ukraine.

The top three performers were a mixed bag, which included fund manager 360 Capital Group (up 17.0 percent), retailer Vicinity Centres (up 13.1 percent) and the diversified Charter Hall Long WALE REIT (up 6.9 percent). Only about a third of the sector, however, delivered a positive return for the quarter, as most stocks were impacted by the weaker market.

Many high-growth fund managers backtracked during the period, with Charter Hall Group (down 19.8 percent), Centuria Capital (down 17.7 percent), Goodman Group (down 13.6 percent) and Home Consortium (dow

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