ASX real estate shares delivered some outsized returns to patient shareholders over the 2021 financial year (FY21). At least, these top 5 ASX real estate shares certainly did.

From 1 July 2020 through to 30 June 2021 the All Ordinaries Index (ASX: XAO) gained 25%.

The index is unlikely to achieve that kind of performance during ordinary times. But these pandemic days are far from ordinary, with shares rebounding from their early 2020 viral selloff through much of FY21.

So too, we witnessed with the best performing ASX real estate shares. They continued their strong recovery through the financial year just past, far outpacing the returns from the All Ords.

So, without further ado…

Sunland Group Limited (ASX: SDG)

Topping the list of best performing ASX real estate shares in FY21 is Sunland Group. Over the financial year, the Sunland share price soared 109.4%, more than 4 times the gains delivered by the All Ords.

20 October was a standout day for Sunland. After the company reported it intended to sell some of its non-core assets and return the proceeds to shareholders, the Sunland share price closed the day up a phenomenal 47%.

Headquartered in Queensland, the property development and construction group listed on the ASX in February 1995.

Sunland closed the financial year trading at $2.45. With some 136.9 million shares, that gave Sunland a market cap of $319.8 million. The company (at current prices) pays a 6.3% dividend yield, 100% franked.

Home Consortium Ltd (ASX: HMC)

The second best performing ASX real estate share on the All Ords is Home Consortium, with a share price gain of 81.3% in FY21.

The internally managed property group is focused on ownership, development and management.

Shareholders have been rewarded by some strategic acquisitions over the year. That includes $133 million of new real estate assets acquired in May to help launch HealthCo, its pending real estate investment trust (REIT).

Home Consortium closed FY21 trading at $5.44 per share. With just over 290 million shares outstanding, that gave it a market cap of $1.6 billion. The REIT pays a dividend yield of 2.4%, fully franked.

Lifestyle Communities Limited (ASX: LIC)

Making the list at number 3 is Lifestyle Communities, with shares closing the financial year up 69.7%.

As the name suggests, the company develops and manages independent living communities for senior citizens. It's also involved in lifestyle homes with sports and entertainment facilities.

Lifestyle Communities had been trading on the ASX since December 1998. It finished FY21 at $5.61 per share, giving it a market cap of $1.6 billion. The company pays a slender dividend of 0.4%, 100% franked.

Arena REIT (ASX: ARF)

Moving on to the fourth best performing ASX real estate share in the financial year just past, we have Arena REIT. Arena's share price gained 62.2% over the 12 months.

The REIT listed on the ASX in June 2013 and mostly invests in childcare, healthcare and government tenanted properties.

Arena closed the year at $3.60 per share. With roughly 343.6 million shares outstanding, that gave it a market cap of $1.3 billion.

Centuria Capital Group (ASX: CNI)

Rounding off the list of top ASX real estate shares to hold in FY21 is Centuria Capital, with a share price gain of 57.5%.

The real estate funds manager has $16.8 billion of assets under management spanning the office, industrial and healthcare sectors across Australia and New Zealand. Commencing next week, on 16 July, Centuria will be included in the ASX 200.

Centuria closed the year at $2.76 per share, with a market cap of $2.3 billion. The company pays a 3.5% dividend yield, 38% franked.

The post The 5 best ASX real estate shares of the 2021 financial year unmasked appeared first on The Motley Fool Australia.

The Australian share market may have dropped lower on Tuesday, but the same cannot be said for the Sunland Group Limited (ASX: SDG) share price.

At one stage the residential property development and construction company's shares were up a massive 50% to $2.00.

The Sunland share price eventually closed the day 46.5% higher at $1.95.

Why did the Sunland share price rocket higher?

Investors were fighting to get hold of the company's shares after it revealed that its directors have undertaken a strategic review of its operations. This follows a consultation with external advisors.

According to the release, the company intends to sell certain inventory which is not currently under development. It also plans to complete the development of certain other projects, over a period likely to be approximately three years, with the intention of converting these assets into cash before repaying all liabilities and returning net asset value to its shareholders.

This remains subject to the sale of the inventory, financiers' satisfaction, and regulatory and legislative requirements.

What is this worth to shareholders?

The release explains that the objective of the strategy is to return shareholders the current net asset value, where possible, of approximately $2.56 per share by way of progressive dividend and capital payments.

This current net asset value is based on an internal estimate undertaken at the end of September.

Why is Sunland doing this?

The company notes that over the last 10 years it has allocated approximately $680 million towards portfolio replenishment, share buy-backs, and dividend payments.

During this time, the consolidated net asset value for Sunland per share has increased from $1.20 to $2.56. It has also reduced the shares on issue from ~320 million to ~133 million.

However, despite this, the board notes that the Sunland share price performance has been disappointing for a number of reasons. This including because "the inherent value of the business has not been recognised by the market in the underlying share price."

It added: "The Board has sought external advice on alternatives to return fair value to Sunland Group's shareholders and the Strategy is considered an appropriate methodology to return value, which the market is not recognising."

Judging by the share price reaction, the market appears to like this strategy and is finally seeing the true value of Sunland's shares.

The post Why the Sunland (ASX:SDG) share price rocketed 50% higher today appeared first on The Motley Fool Australia.

High paying ASX dividend shares can be difficult to find. However, if you look hard enough, there are some great deals on the ASX. The beauty of a dividend, once declared, is that it's almost 100% certain to be paid. I believe all the companies discussed below represent solid investments and, furthermore, their dividend payments are higher than average.

It's important to note when buying dividend shares that the purchase must be made prior to the ex-dividend date in order to qualify for the next payment. After this date, the buyer is not eligible to receive the next dividend. Also, bear in mind the practice of dividend harvesting. This is a tactic in which investors will buy shares to get the high yield payment, and then sell immediately as the share goes ex-dividend.

Nonetheless, I am confident these shares will continue to rise over the near term. So if you are willing to hold them for 3 – 6 months, you should also see a small level of share price growth.

One share to buy today for a 6.67% yield

Ashley Services Group Ltd (ASX: ASH) is a human resources consultancy offering training, recruitment and labour hire services. It has multiple brands operating in each vertical, and is also a registered training organisation (RTO). The company published its FY20 annual report on Friday, and correspondingly its share price jumped by 6.5%.

Over the past 5 days, the Ashley share price has risen by 10.9%. Nonetheless, the company is still selling at a price-to-earnings (P/E) ratio of 9.48. From its current report, and prior history, I believe this is a good small cap to own. It continues to increase sales and to build its footprint. In addition, the company has no borrowings and plenty of cash on hand. 

Based on Friday's closing price, this ASX dividend share will yield 6.75%. However, it goes ex-dividend on 1 September, or tomorrow. So if you are going to get this dividend, there is little time to waste.

One ASX dividend yield of 12.5%

This ASX dividend share has only recently come onto my radar. Base Resources Limited (ASX: BSE) is a successful mineral sands company operating in Kenya and Madagascar. It has found an ore body that has a very low strip ratio, that is, a low waste-to-product ratio. Moreover, in the past month, the Base Resources share price has risen by 29.1%. 

The company's net profit after taxes (NPAT) for FY20 was $39.6 million. This was a slight reduction on 2019 due to reducing ore grades where it is producing. Nevertheless, the company intends to produce 700,000 tonnes in FY21, an increase of 50.2%. 

This year will be the company's maiden dividend payment. Based on Friday's closing price, this dividend will yield 12.5%, which is a large payment by any standards. From my investigations, Base Resources appears to be a company that delivers on its promises. As such, I think it's a good investment regardless of the payment. 

The share goes ex-dividend on 18 September. 

A beautiful company to buy before Wednesday!

One look into the financials, website or buildings of Sunland Group Limited (ASX: SDG) and you will see a company obsessed with beauty. The entire company and its products reflect minimalism, with sleek lines, soft angles and the reinforcement of architecture as art. This small cap is valued at $194 million and is a residential property developer with a difference. I have to admit, I find the company's aesthetics highly appealing.

However, Sunland has not had a great year due to coronavirus. It has seen statutory net profits after tax reduce to $2.4 million due to one-off write downs. Nevertheless, gearing is still low at 33%, and the company is set to see a great improvement in FY21. At present, it has a net tangible asset value of $2.56 per share, yet is selling at $1.42. 

If you purchase this ASX dividend share before Wednesday 2 September, then based on Friday's closing price, it will pay a yield of 7.04%. Aside from its dividend, I also believe Sunland Group will be a good company to own over the medium term in general. 

The post 3 ASX dividend shares to buy urgently! appeared first on The Motley Fool Australia.

It's no secret that property prices, along with household debt, have raced higher in the last few years. This has occurred at a rate much faster than wage growth and has raised concerns that we might be in a housing bubble.

With the big banks such as Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB) tightening their lending and others such as Bank of Queensland Limited (ASX: BOQ) hiking rates, this has led to concerns that this bubble might be about to pop.

There has also been a particular focus on the Brisbane apartment market with reports in the Australian Financial Review that some buyers of off the plan units from Lendlease Group (ASX: LLC) are now selling at a loss.

Despite this, Sunland Group Limited (ASX: SDG) is taking on the Brisbane market.

The Queensland based property development company announced that it has acquired a 3.26-hectare site in Kenmore, 11km south-west of the Brisbane CBD, for $13.1 million.

According to the announcement, the site has, "Development Approval for 96 four bedroom terraced homes with an estimated end value of $65 million".

With a portfolio of other Brisbane properties including the Shea Residences in St Lucia which is sold out, how is Sunland aiming to beat the bubble?

Beating the bubble

The Sunland Group Managing Director said the group's strategy is to focus on:

• Premium sites in high growth areas
• The owner-occupier market (as opposed to investors)
• Areas with considerable natural and built amenities including good schools, parks and shopping centres

In other words, an area where you'd be willing to live and raise a family.

Foolish Takeaway

While the property market would not be my first investment choice (I think there are better opportunities elsewhere), I think it makes sense for companies within that industry to focus on the key growth drivers going forward.

As new households form, they will want to live in good areas and Sunland is looking to benefit from that.

The post Here's how Sunland Group Limited (ASX:SDG) is aiming to beat the housing bubble appeared first on The Motley Fool Australia.

Besides buying property directly you can to get exposure to the property market, via real estate shares on the ASX.

The ASX has plenty of property shares to choose from, that develop or manage, residential, commercial or industrial property.

DEXUS Property Group (ASX: DXS) is one that covers all three, while the Investa Office Fund (ASX: IOF), manages office properties around Australia.

Below are two small cap shares, focused on the Gold Coast and Perth, that I think have the potential for solid growth.

Finbar Group Limited (ASX: FRI) is a residential property developer, mainly developing apartments and some commercial property in Perth.

The company has $68 million in cash and while there is some debt, it is all related to projects. Finbar reported $5.1 million in net profit for Fy2017, which is the 21^st year of consecutive profit.

Sales are starting to ramp up and this year they have sold 154 units, being either pre-sales of future projects or sales of completed projects, which is up from last year.

The company paid a fully franked 6 cent dividend for the year, which is the 15^th consecutive year paying dividends and has a dividend yield of 6.22%.

The share price is down from a high of $1.8 0in 2013, due to a decline in pre-sales, but looks to have bottomed out, so could be good for price appreciation, growth, and yield.

Sunland Group Limited (ASX: SDG) is also a property developer of residential housing and urban development.

The share price has risen 338% since the depths of the GFC and has a dividend yield of 4.65%. The P/E ratio is 7.68.

The company has most of its developments around the Gold Coast, which is benefiting from foreign investment, mainly from China and the Commonwealth games being held in 2018. This has also lead to improvements in infrastructure, notably the airport.

But not all are foreign investors, with many southern buyers coming up from the colder climates.

Property Analysts are predicting the market to be hot for another 2-5 years and it still has not reached the heights of the big centres of Melbourne and Sydney.

The post 2 small cap property shares to buy appeared first on The Motley Fool Australia.

The S&P/ASX 300 (Index: ^AXKO) (ASX: XKO) has rocketed up 1.4% in trading today, following yesterday's flat finish and 6 consecutive down days before that.

Since the start of this month, the index is down 5.2% already, but today's rise will offset some of the pain…except for these stocks, which were crunched on the market.

The Australian dollar jumped nearly 3 cents against the New Zealand dollar, after the Kiwi Central Bank cut interest rates for the first time in four years, from 3.5% to 3.25%. The Aussie is buying NZ$1.11 currently. As a result, several New Zealand-based companies listed on the ASX saw their shares plunge.

Air New Zealand Limited (ASX: AIZ) fell 4.9%, Metro Performance Glass Ltd (ASX: MPP) dropped 5.9%, Chorus Limited (ASX: CNU) lost 3.5%, while Spark New Zealand Ltd (ASX: SPK) fell 4.1%. Xero FPO NZ (ASX: XRO) dropped 3.9%.

Property developer Sunland Group Limited (ASX: SDG) fell 3.7% to $1.685. The company's shares are virtually flat since the start of the year, but Sunland has big plans for the future. The company recently announced the settlement of 41.9 hectares of development land in Mermaid Waters on the Gold Coast for $61 million. Sunland has approval to build 1,425 dwellings, with an estimated overall end value of in excess of $850 million.

Listed investment company (LIC) Australian Leaders Fund Limited (ASX: ALF) fell 4.3% to $1.11, Earlier this month, the company reported that the gross portfolio value had dropped 0.44% in May 2015, while the All Ordinaries Accumulation Index had increased by 0.6%. Australian Leaders takes long and short positions on the ASX, and has produced compound annual returns of 14% over the past decade, but last month suggested that the ASX was overvalued, as profit growth slows.

The post 7 stocks slammed on the ASX today appeared first on The Motley Fool Australia.