Australians love investing in property, but when it comes to real estate investment trusts (REITs) it’s a very different story. Just 2% of Australian adults, or an estimated 490,000 people, own REITs, according to the latest research from Finder. So, what exactly are REITs and who is investing in them? Let’s break it down.
What is a real estate investment trust (REIT)?
A real estate investment trust (REIT) is a company that owns income-generating real estate.
Similar to how mutual funds generate dividends, REITs allow investors to earn an income without the hassle of owning and operating property first-hand.
Most REITs are publicly traded like stocks, which makes them more liquid than physical real estate assets.
Key REIT statistics
2% of Australian adults, or an estimated 490,000 people, currently own REITs.
Men are more likely to invest in REITs than women, with 3% of men holding REITs compared to 2% of women.
Australian REITs have a market capitalisation of $144.68 billion as of August 2022.
Gender investing gap
Men (3.4%) are more likely to invest in REITs than women (1.5%).
The gap widens when you look at the number of people who own REITs either personally or via a company structure or family trust – 9% of men own REITs under these terms versus 4% of women, according to ASX research from 2020.
The same study found that men are also more likely to have knowledge of REITs. 24% of men are familiar with REITs even if they haven’t invested, compared to just 14% of women.
REIT ownership by generation
Gen X are the biggest holders of REITs, with 4% saying they currently own them compared to just 2% of baby boomers, gen Y and gen Z.
Australia’s REIT market capitalisation
Australian REITs market cap is worth $144.68 billion as of August 2022, according to ASX data.
While the market cap has grown since 2017, it’s still down from December 2021 when the market cap hit a 5-year peak at $179.10 billion.
The top 10 largest REITs in Australia by market cap
Goodman Group, Scentre Group Limited and Dexus are the largest REITs on the ASX by market cap.
Sources
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To make sure you get accurate and helpful information, this guide has been edited by
Moira Daniels
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fact-checking process.
Madeleine Atkinson is a Communications Manager at Finder. She completed her Bachelor of Arts (Media and Communications) at the University of Sydney. You can contact her at madeleine.atkinson@finder.com.
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