Key takeaways:

• Shares within the real estate sector typically prioritise income for shareholders, albeit such dividends are in most cases, unfranked.

• Refinitiv estimates, made available to Selfwealth investors on the trading platform, suggest markedly lower earnings and dividends for REITs in FY24 versus the prior corresponding period, with some prospect these metrics stabilise the following year.

The ASX provides access to an extensive assortment of real estate investment trusts (REITs) that span across different segments of the property market. From industrials, to office, healthcare, retail, and everything else in between, the sector features several mid-to-large-cap shares.

These companies specialise in various activities, including but not limited to the acquisition, development, ownership, operation, leasing, and management of property assets. Often, said trusts are established for a combination of income and capital growth objectives, which gives rise to several high yield opportunities in this sector. With that in mind, here are some of the highest yield real estate shares on the ASX today.

Please note: This list is intended to present a selection of shares from this sector that are trading with the highest 12-month trailing dividend yield, excluding special dividends and disregarding franking status. All forecasts provided are from Refinitiv, based on a range of analyst estimates as of June 26, 2024. There are no guarantees these shares will continue to pay dividends as they have in the past, or at all. Refinitiv estimates, are made available to Selfwealth investors on the trading platform.

Centuria Office REIT (ASX: COF)

Trailing 12-Month Dividend Yield: 10.3% | Refinitiv Forecast Forward Yield (FY25): 10.3% | Market Cap: $696.0 million

Centuria Office REIT is a pure-play office real estate investment trust (REIT). The Trust owns a portfolio of office assets situated in core submarkets throughout Australia, spanning across various states and territories. As a focal point for the Trust, COF invests in real estate assets within sectors such as industrials, healthcare, decentralised office, agriculture, large-format retail, daily-needs retail, and real estate finance.

In addition, the firm offers exposure to both listed and unlisted real estate funds across debt and equity markets, as well as investment bond options. According to recent data from the company, Centuria Office’s portfolio features more than 23 assets with a value of $2.3 billion, with most of those assets being in metropolitan regions and near city office markets.

Over the last four quarters, Centuria Office REIT has declared a dividend of $0.03 per share on each occasion. That corresponds with a trailing 12-month dividend yield of 10.3%, albeit as is the case with many REITs, this yield is unfranked. Based on Refinitiv data that is available to investors on the Selfwealth platform, the Trust’s earnings and dividend per share are both expected to moderate in FY24, before stabilising the year after. The implied forward dividend yield for FY25 is consistent with the current trailing 12-month dividend yield of 10.3%.

Growthpoint Properties Australia (ASX: GOZ)

Trailing 12-Month Dividend Yield: 8.3% | Refinitiv Forecast Forward Yield (FY25): 8.2% | Market Cap: $1.75 billion

Growthpoint Properties Australia invests in industrial and office properties across Australia. It operates through three segments: Industrial Property Investments, Office Property Investments, and Funds Management. As far as assets, GOZ owns and manages approximately 57 office and industrial properties.

The portfolio of office real estate focuses on assets with high ‘green credentials’, and most of said properties are located on the fringe of central business districts (CBD), or in metropolitan markets. Alongside managing and investing in its own portfolios, Growthpoint Properties Australia also manages properties on behalf of third-party investors via its funds management business, whereby it manages funds that invest in assorted use real estate, in addition to debt investments.

Unlike some other real estate operators, Growthpoint Properties Australia pays just two dividends per year, with one for each half. With respect to the last two reporting periods, GOZ declared unfranked dividends of $0.0965 per share, representing a trailing 12-month dividend yield of 8.3%. Refinitiv expects the company’s earnings per share to drop considerably in FY24 versus the prior corresponding period, with an accompanying modest decrease in its total dividend. Nonetheless, forecasts offered by the research house, available on the Selfwealth platform, suggest an implied forward dividend yield of 8.2% for FY25, broadly consistent with current yield levels.

Charter Hall Long WALE REIT (ASX: CLW)

Trailing 12-Month Dividend Yield: 7.7% | Refinitiv Forecast Forward Yield (FY25): 8.0% | Market Cap: $5.8 billion

Charter Hall Long WALE REIT specialises in investing in Australasian real estate assets that are predominantly leased to corporate and government tenants on long-term leases. A core goal of the REIT is to provide investors with exposure to assets that have the potential to generate stable and secure income, as well as exposure to potential income and capital growth through the property cycle.

The REIT is actively managed by Charter Hall Group with the aim to grow the portfolio through direct and indirect investments across multiple real estate sectors. Charter Hall Group is a fully integrated property investment and fund management group managing over 1,600 properties across the office, industrial and logistics, and retail sectors. During each of the last four quarters, Charter Hall Long WALE REIT declared an unfranked dividend of $0.065 per share. Annualised, that leads to a trailing 12-month dividend yield of 7.7%. On the Selfwealth trading dashboard, Refinitiv estimates suggest that CLW’s earnings and dividend per share may moderate in FY24, before subsequently increasing the following financial year. The data places CLW on an implied dividend yield of 8.0% for FY25.

Waypoint REIT Limited (ASX: WPR)

Trailing 12-Month Dividend Yield: 7.3% | Refinitiv Forecast Forward Yield (FY25): 7.5% | Market Cap: $1.5 billion

Waypoint REIT owns approximately 400 fuel and convenience retail properties with a portfolio of networks across all Australian states and mainland territories. According to the firm, its investment objective is to maximise long-term income and capital returns from said assets, ultimately for the benefit of all security holders.

The firm’s real estate portfolio is classified across four segments: Capital Cities, Other Metro, Highway, and Regional. Waypoint’s Capital Cities assets are in the Greater Capital City Statistical Areas of Australia’s eight states and territories. Its regional segment invests in properties located in smaller regional cities and towns. Waypoint has lease agreements with Viva Energy Australia, as well as other fuel and convenience retail operators.

Over the last 12 months, Waypoint REIT has paid a total of $0.1644 per share in dividends to unitholders in the Trust. This amount was split approximately evenly across quarterly dividend payments, with each dividend being unfranked. Forecasts provided by Refinitiv, and supplied to the Selfwealth community, offer a suggestion that Waypoint’s earnings and dividend could remain broadly flat until FY25.

Abacus Group (ASX: ABG)

Trailing 12-Month Dividend Yield: 8.1% | Refinitiv Forecast Forward Yield (FY25): 7.6% | Market Cap: $1.1 billion

Abacus Property Group is a diversified real estate investment trust (REIT) with an investment portfolio concentrated in the commercial property and self-storage sectors. According to the business, one of its core objectives is to invest capital in real estate opportunities that have the potential to deliver long-term returns and maximise security holder value.

Its operations are split into two core segments, being Property Investment and Property Development. The Property Investment segment invests in and manages the ownership of self-storage and commercial (office and retail) properties. It also includes the equity accounting of co-investments in property entities not engaged in development projects. On the other hand, Abacus’ Property Development segment specialises in secured lending and handles investment in joint venture development projects.

While Abacus slashed its total dividend payment by more than half during the last 12 months, the Trust is still trading on a trailing 12-month dividend yield of 8.1%. This includes interim and full-year dividends of $0.0425 each, both unfranked. As noted already, the company’s total dividend for FY24 is well below that of the preceding year, which is in line with a significant decrease in earnings per share. Refinitiv data on the Selfwealth platform suggests these metrics may stabilise somewhat in FY25, with the forecast data corresponding to a slightly lower implied dividend yield of 7.6%.