unlisted property funds outperform during Covid-19

Unlisted property funds beat REITs through Covid

A recent artcle from the Australian Financial Review has shown: “returns from unlisted property funds have dramatically outpaced those those from listed property stocks, which have yet to recover from their wild ride into the red after the coronavirus pandemic struck.”

The article also went on to say: “Unlisted property funds withstood the June quarter economic downturn to deliver a 14.5 per cent return over the previous 12 months. according to data released this week by Zenith Investment Partners, Australian Unity, MSCI, the Property Funds Association and the Property Council of Australia. Further information on this here: Unlisted property fund performance

It also stands in stark contrast to most of the share market which was ambushed by the COVID-19 pandemic. Particularly hard hit by the virus-led volatility were the Australian real estate investment trusts, which posted a negative 26.3 per cent return over the same period. The broader equities market fell 8.7 per cent.

For comparison, direct property narrowly held on to a positive performance delivering 1.4 per cent, while fixed income delivered 5.5 per cent and cash dipped to 1.0 per cent.

Through March the AREITs fell hard, dropping around 35 per cent. But in the six months to the end of September they have gained around 29 per cent. As a result for the 12 months to the end of September listed property stocks are returning negative 15.8 per cent.”

 

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