2241 GMT - Interest-rate moves are stalling a recovery in share prices of many Australian real-estate investment trusts, Morgan Stanley says. "We had thought that the A-reits were heading into a period whereby the asset-heavy rent collecting stocks will trade at, or above, 1x price-to-net tangible assets, as asset values gain upward momentum," analyst Simon Chan says. Last month's earnings season showed average revaluations rising across every type of property. It was the first time in four years this has happened. However, uncertainty around central bank rate hikes reduced the sector's multiple to 0.9x P/NTA. MS says reits may have a bumpy run to clear 1.0x P/NTA. "But one thing is clear--asset valuations are robust, so fund managers (Charter Hall, Centuria Capital) remain our preferred investment," MS says. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

March 02, 2026 17:41 ET (22:41 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.