The AREIT reporting season for the 2019 financial year (FY19) has just ended. To most in the market, it was in-line with expectations, perhaps to the point of being dull. At APN, that’s exactly how we like it.
Looking under the hood, sector performance has been anything but dull. In FY19, the S&P/ASX 300 AREIT Index returned 19.4%, the strongest result in three years and 8.0% higher than Australian equities. That’s something to shout about.
It was, though, a tale of two halves. For investors seeking AREITs to add diversification to their portfolios, they delivered. Through the volatile last quarter of 2018, AREITs consistently outperformed the ASX 300 Index, as the chart below shows. At a time when volatility was high and a wintry outlook was forecast, AREITs offered a safe haven.