The Real Estate Investment Trust (REIT) markets in New Zealand and Australia offer investors exposure to various property sectors across both countries. From the analysis, we’ve identified:
8 distinct property sectors including Diversified, Office, Industrial, Healthcare, Retail, Energy, Agricultural, and Self-storage
Country Distribution
New Zealand REITs (8)
Kiwi Property Group (KPG.NZ)
Precinct Properties (PCT.NZ)
Argosy Property (ARG.NZ)
Property for Industry (PFI.NZ)
Vital Healthcare Property Trust (VHP.NZ)
Stride Property Group (SPG.NZ)
Investore Property (IPL.NZ)
Genesis Energy (GNE.NZ) – Note: Primarily an energy company with property assets
Australian REITs (12)
Rural Funds Group (RFF.AX)
Centuria Office REIT (COF.AX)
GPT Group (GPT.AX)
Dexus (DXS.AX)
Goodman Group (GMG.AX)
Stockland (SGP.AX)
Mirvac Group (MGR.AX)
Charter Hall Long WALE REIT (CLW.AX)
Charter Hall Retail REIT (CQR.AX)
Waypoint REIT (WPR.AX)
HomeCo Daily Needs REIT (HDN.AX)
National Storage REIT (NSR.AX)
Sector Analysis
Diversified REITs (8)
Diversified REITs represent the largest sector across both markets, with 8 entities (40% of all identified REITs):
New Zealand (3): Kiwi Property Group, Argosy Property, Stride Property Group
Australia (5): GPT Group, Dexus, Stockland, Mirvac Group, Charter Hall Long WALE REIT
Diversified REITs typically hold a mix of retail, office, industrial and sometimes residential properties, providing investors with broad exposure to the property market and reducing concentration risk.
Retail REITs (4)
Retail represents the second-largest sector:
New Zealand (1): Investore Property
Australia (3): Charter Hall Retail REIT, Waypoint REIT, HomeCo Daily Needs REIT
Australian retail REITs have shown a trend toward “daily needs” and convenience-based retail, which has proven more resilient against e-commerce disruption.
Office REITs (2)
New Zealand (1): Precinct Properties
Australia (1): Centuria Office REIT
Office REITs face evolving challenges with changing work patterns post-pandemic, but premium-grade office space in CBD locations continues to demonstrate resilience.
Industrial REITs (2)
New Zealand (1): Property for Industry
Australia (1): Goodman Group
Industrial is considered one of the strongest performing sectors, driven by e-commerce growth and supply chain restructuring.
Specialised Sectors
Several niche sectors provide unique investment opportunities:
Healthcare (VHP.NZ): Defensive characteristics with aging population tailwinds
Agricultural (RFF.AX): Exposure to the rural economy and food production
Self-storage (NSR.AX): Resilient through economic cycles with stable cash flows
Energy with Property (GNE.NZ): Primarily an energy company but with significant property assets
Market Characteristics Comparison
New Zealand REIT Market
Smaller market with fewer listed REITs
Strong representation in diversified and office sectors
Highly concentrated in Auckland and Wellington
Generally higher yields compared to Australian counterparts
More limited liquidity and market depth
Australian REIT Market
Larger, more mature market with greater diversification
Stronger international exposure through some REITs (e.g., Goodman Group)
More specialised sector options
Greater economies of scale
Generally, more liquid with higher market capitalisation
Investment Considerations
Yield Comparison
REIT dividend yields typically outpace government bonds in both countries, making them attractive for income-focused investors.
Regulatory Differences
Both countries have different tax treatments and regulatory frameworks for REITs:
New Zealand: PIE (Portfolio Investment Entity) tax structure
Australia: Trust structure with tax advantages
Currency Exposure
Investing across both markets introduces NZD/AUD currency exposure, which requires consideration for portfolio planning.
Market Cycles
Property markets in both countries may be at different stages of the property cycle, potentially offering diversification benefits.
Sector Outlook
Growth Sectors
Industrial & Logistics: Strong outlook driven by e-commerce and supply chain restructuring
Healthcare: Defensive characteristics with aging demographic tailwinds
Data Centres: Emerging opportunity with digital transformation (limited REIT exposure currently)
Challenged Sectors
Retail (non-essential): Continued pressure from e-commerce
Office: Evolving dynamics with hybrid work models
Stable Sectors
Convenience Retail: Resilient through economic cycles
Self-storage: Consistent performance with urbanisation trends
Risk Factors
Interest rate sensitivity
Property valuation cycles
Tenant default risk
Development risk (for REITs with active development pipelines)
Regulatory and taxation changes
Geographical concentration risk
Investment Strategies
Pure-Play Approach
Focusing on specialist REITs within high-performing sectors (e.g., industrial, healthcare).
Diversified Approach
Using diversified REITs or a portfolio of sector-specific REITs to gain broad property market exposure.
Cross-Border Strategy
Combining New Zealand and Australian REITs to benefit from different market cycles and reduce country-specific risk.
REIT Investments in New Zealand and Australia
The REIT markets in New Zealand and Australia offer complementary investment opportunities across various property sectors. The diversified nature of these markets provides options for both income-focused and growth-oriented investors. The larger size and greater specialisation of the Australian market balance well with the typically higher yields of the New Zealand market, creating opportunities for a strategic cross-border approach to REIT investing.
This article is proudly brought to you by the New Zealand Knowledge Collective. We bring together expert insights and practical wisdom for informed living in today’s world. Through our network of Kiwi specialists and evidence-based resources, we’re dedicated to enhancing your knowledge journey across Aotearoa and beyond. Explore our latest posts and stay informed with the best in Books, Travel, Online Education, Personal Finance & Investment, Technology,and Home & Interior Design!
