A-REIT

Big real estate trusts are delivering tough outlook statements, but there is more pain to come as office markets struggle.

Most of us have happily indulged in retail therapy, but how many of us have considered investing in a retail real estate? Here’s what you need to know about investing in commercial property’s largest and most diverse sector.

An Australian Real Estate Investment Trust is an investment trust that owns and usually operates a portfolio of income-producing property. It offers plenty of benefits, but has some drawbacks, too.

The property sector is proving a profitable ground for potential listings of new companies on the ASX, with Newmark Capital the latest to weigh up a move as it readies a potential listing of its $300 million hardware trust.

The steep rise in commercial property values could place the creditworthiness of some real estate investment trusts under pressure, according to Moody’s Investors Service.

In the past 18 months, there has been a continual compression of capitalisation rates, or cap rates, across Australia’s commercial property markets. So what exactly does this tell us about where the market is now …

Industry experts are expecting more merger and acquisition activity in Australia’s $137.8 billion listed real estate investment trust sector. This article originally appeared on theaustralian.com.au/property.