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REITs to surge as investors seek yield

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By Samantha Hodge
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3 minute read

Australian investors should consider taking a dollar cost average approach to investments in the global real estate investment trust (REIT) sector to capitalise on long term opportunities.

Inflows into REITs and property are expected to pick up as retail investors begin to recognise the attractiveness of the sector and continue their search for yield.

Poor markets and falling cash rates mean investors are looking for strong yield prospects elsewhere.

"I think that if you're interested in investing in this space, I would take a dollar cost averaging approach," Principal Real Estate Investors real estate executive director Pat Halter told InvestorDaily.

"Start to make some investments in this marketplace, then build on those investments over time. [This] allows you diversification in terms of the timeframe you're investing in.

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"Long term, real estate and global REITs will produce a very adequate and satisfying return so take a risk control risk managed approach but start to invest in the space now," he said.

Principal Global Investors chief executive Grant Forster explained that investment into the global REIT sector allows investors in Australia to have diversification offshore that they aren't able to attain elsewhere.

"At the same time, a lot of advisers are saying 'this is a great cornerstone for the superannuation-type client'," Mr Forster told InvestorDaily.

"So if there is a general belief to increase that exposure, getting global offshore just makes sense.

"It's very difficult for Australians to go and get a meaningly diversified offshore property holding. This is a liquid and very easy way to do it," he said.