Logo 2016

Increase Font Increase Font

Real Estate Investment Trusts (A-REITS)

Australian Real Estate Investment Trusts (A-REITs) enable investors to acquire an interest in a diversified, professionally managed portfolio of real estate that is not readily accessible to most individual investors. These may include office towers, industrial, leisure, and retail property.

Investors earn income through the regular collection of rental income generated from the properties owned. They can also benefit from any increase in the value of the underlying asset.

The benefits of investing in A-REITs include :

  • income and capital growth
  • diversification
  • low cost exposure to real estate
  • liquidity of holdings
  • access to tax concessions (e.g. depreciation allowances).

However, investors should also be aware of the risks involved:

  • Market risk: for REITs this could be caused by market sentiment owing to asset devaluations.
  • Gearing risk: some REITs may borrow funds to increase potential returns; this can magnify losses and returns.
  • Income risk: past distributions by REITs cannot be guaranteed for the future and may vary over time.
Get started

Contact us for an obligation-free conversation. 
Call 1300 4 BURRELL for more information.