The S&P/ASX 200 A-REIT Index (INDEXASX: XPJ) is down again this week, falling a substantial 2.35% against last week's levels. This fall was to be expected and reflects a tumultuous few weeks for the ASX as well as global markets, which of course takes a toll on A-REITs (Australian Real Estate Investment Trusts).
Also contributing to the drop is the current earnings season, which has seen some REITs deliver some less-than-exciting numbers. Let's take a look and see how some of the big ASX REITs have been doing this week.
Goodman Group (ASX: GMG)
Goodman is the king of the A-REIT pile with an 18.89% weighting in the XPJ index. GMG shares are trading today at $14.74, which is down more than 2% on last week's levels. Despite this, investors have nothing to complain about seeing as the shares are still up a meaty 38.4% for the year so far.
Scentre Group (ASX: SCG)
Scentre comes in second in the XPJ index with a weighting of 16.3%. SCG shares are trading this morning for $3.86, down 4% on last week's levels. We can give Scentre a pass for this drop though, as the shares went ex-dividend last Wednesday. As the current yield is sitting at 5.8%, it was actually a good week for Scentre, all things considered.
Dexus Property Group (ASX: DXS)
Dexus has a bit of a shocker this week, with DXS shares trading this morning for $12.97, down more than 3% on last week. Dexus reported earnings last week and investors weren't too thrilled with the 26% profit haircut that this REIT turned up with. Dexus still holds the bronze medal in the XPJ index though, with a weighting of 11.4%
Mirvac Group (ASX: MGR)
Capping off this (slightly depressing) week for A-REITs is Mirvac, with a 10% weighting in the XPJ index. Mirvac shares are currently trading for $3.18, which is more than 2% down on last week. Still, investors who bought MGR shares after New Year's Day would still be up 43% on their investment, so another big YTD performer we have here.
Foolish takeaway
With earnings coming out and global tensions swirling around the markets this week, I think share prices of our A-REITs are coming a little closer to earth after a big year of growth for the sector. Whether or not this is a consolidation or a correction remains to be seen, but with interest rates at record lows, in my view there still remains some ceiling space yet for the sector. Until next week!
