Is it possible to make money from real estate funds in 2020? These funds suggest it is
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Despite the uncertainty around property prices, some funds — both ASX listed and private funds — are sitting on positive returns in 2020.
Among the ASX’s Real Estate Investment Trusts (REITs) or property investment stocks, the average loss this year is nearly 20 per cent.
Both of these stocks are focused on the agricultural property sector and have climbed despite the impact the summer’s bushfires had on the sector.
The sector’s biggest winner is also one of the ASX’s biggest listed players — +$30bn giant Goodman Group (ASX:GMG). Goodman owns and manages industrial properties including warehouses and logistics facilities.
Here’s a list of all ASX-listed REITs and their performance in 2020:
|Code||Name||Price||YTD % Return||Market Cap|
|RFF||RURAL FUNDS GROUP||2.16||16.76||737.62M|
|VTH||VITALHARVEST FREEHOLD TRUST||0.79||13.2||147.08M|
|AQR||APN CONVENIENCE RETAIL REIT||3.71||8.96||414.97M|
|CHC||CHARTER HALL GROUP||11.17||2.67||5.20B|
|NSR||NATIONAL STORAGE REIT||1.83||2.12||1.87B|
|CIP||CENTURIA INDUSTRIAL REIT||3.21||-0.05||1.28B|
|HPI||HOTEL PROPERTY INVESTMENTS||2.99||-3.55||463.29M|
|INA||INGENIA COMMUNITIES GROUP||4.64||-4.01||1.53B|
|BWR||BLACKWALL PROPERTY TRUST||1.31||-6.58||194.56M|
|CLW||CHARTER HALL LONG WALE REIT||4.76||-10.35||2.34B|
|LEP||ALE PROPERTY GROUP||4.9||-10.79||959.27M|
|TOT||360 CAPITAL REIT||0.88||-11.63||122.14M|
|APW||AIMS PROPERTY SECURITIES FUN||1.27||-12.23||56.98M|
|ADI||APN INDUSTRIA REIT||2.43||-12.83||481.96M|
|ECF||ELANOR COMMERCIAL PROPERTY F||1.01||-15.59||203.38M|
|QPR||QUATTRO PLUS REAL ESTATE||-16.07||75.52M|
|IAP||INVESTEC AUSTRALIA PROPERTY||1.15||-17.03||721.33M|
|CQE||CHARTER HALL SOCIAL INFRASTR||2.57||-17.5||926.15M|
|SCP||SHOPPING CENTRES AUSTRALASIA||2.09||-18.03||2.29B|
|GOZ||GROWTHPOINT PROPERTIES AUSTR||3.18||-19.78||2.49B|
|CMW||CROMWELL PROPERTY GROUP||0.88||-20.4||2.34B|
|CQR||CHARTER HALL RETAIL REIT||3.29||-21.62||1.86B|
|ABP||ABACUS PROPERTY GROUP||2.63||-21.98||1.78B|
|AOF||AUSTRALIAN UNITY OFFICE FUND||2.15||-22.46||350.09M|
|GDF||GARDA PROPERTY GROUP||1.01||-23.64||193.70M|
|TGP||360 CAPITAL GROUP LTD||0.81||-25.25||187.01M|
|GDI||GDI PROPERTY GROUP||1.05||-25.94||570.05M|
|COF||CENTURIA OFFICE REIT||1.92||-29.34||1.00B|
|ERF||ELANOR RETAIL PROPERTY FUND||0.81||-36.11||103.63M|
|CDP||CARINDALE PROPERTY TRUST||2.9||-50.86||199.50M|
|URF||US MASTERS RESIDENTIAL PROPE||0.25||-71.26||95.27M|
Non-listed funds have taken a near 20 per cent hit too, according to CF Property Capital.
But CF says one of its funds, the Chiodo Diversified Property Fund (CDPF), has dipped just 1.4 per cent in 2020 and is up 4.4 per cent on a 12-month basis.
The CDPF focuses on unlisted property schemes, mostly in low-risk high-growth residential developments.
CF says being unlisted has its advantages.
“Because we’re an unlisted property fund, our projects are re-valued at certain milestones of their construction phase as an unlisted portfolio, whereas shares of listed property funds are revalued daily,” executive director Ilya Frolov said
“This means our investors are less exposed to the impacts of the share market and COVID-19 even after we’ve imposed a 5 percent decrease in our asset portfolio.”
Plunging property prices, however, can present lucrative opportunities, according to CF.
This is because funds can buy land on the cheap, construction can begin faster and the sale in the future is likely to return a higher yield than if investors waited for market sentiment to recover.
“When there is a crisis, there is that opportunity for cheaper acquisitions which means potentially higher returns when we get out of the crisis,” Frolov said.