Australian REITs Could Outperform if RBA Rate Hikes are Over
Dow Jones
Aug 04
0103 GMT - An expectation that Australia's central bank might be done raising interest rates prompts UBS to assess what this means for local REITs. Under this scenario, analyst Solomon Zhang says compression in the yield curve should support strong forward returns for listed REITs over the next 6-12 months. UBS notes that Australia's REITs delivered a total return of 37% over the 12 months that followed the RBA last pausing its rate-hike cycle in November 2023. Then, REITs outperformed stocks on the ASX 200 index, excluding banks and resources companies, by 22%. UBS has buy calls on HMC Capital, GPT, Charter Hall and Ingenia Communities, among other stocks.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.