Compare Australian REITs (A-REITs) by matching their property businesses and reporting periods first, then examine issuer-reported funds from operations (FFO) per security, gearing and distribution yield. None of those measures is meaningful in isolation: FFO definitions can differ, gearing depends on its calculation and balance-sheet context, and yield changes with both the distribution and the price basis.
Start with comparable property businesses
ASX-listed A-REITs invest in different property segments, including industrial, office, hotel and leisure, retail, and diversified property. The ASX describes the sector as spanning multiple segments; its overview, accessed in 2026, says it covers 50 trusts with more than $100 billion in funds under management. Those sector-wide figures do not make the trusts interchangeable. ASX: A-REITs
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Before comparing ratios, record what each trust owns and how it earns income. Note its property segment, tenants and lease profile, geographic and asset concentration, and development exposure. A specialist landlord and a diversified trust may face different operating risks even when a headline ratio looks similar.
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Compare FFO per security and its trend
Funds from operations is an operating-performance lens. For a useful comparison, use each issuer’s reported FFO per security, examine it across several reporting periods, and read the issuer’s definition and adjustments. The reviewed sources do not establish one uniform FFO calculation across all A-REITs, so figures should not be treated as strictly comparable unless the differences have been reconciled.
Check what is driving any change. Growth may reflect recurring net property income, but BDO’s FY25 survey also discusses contributions from co-investment returns and management operations. Separate those sources where issuer reporting allows; a headline increase alone does not show that recurring property earnings improved. BDO Australia: A-REIT Survey
Read gearing as a balance-sheet measure
Gearing indicates leverage, but the percentage needs its calculation and denominator to be interpretable. Record the issuer’s stated gearing measure alongside debt maturity, interest costs and asset valuation assumptions where disclosed. Consider whether cash flows can support debt costs and refinancing needs, especially if property values fall.
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BDO reported average A-REIT gearing of 28.6% in FY25, describing it as aligned with long-term sector levels of about 30%. BDO also noted pressure from higher debt costs and reduced asset values. These are historical sector context, not a recommended threshold, a forecast or a current figure for any individual trust. BDO Australia: FY25 A-REIT Survey
Make distribution yields comparable
A yield is a ratio whose meaning depends on the distribution and price used. When comparing trusts, label whether the distribution is paid or forecast, the measurement period, the security-price date or averaging method, and any gross or other adjustment. Do not infer future distributions from a historical yield.
The calculation conventions can differ. BDO’s FY25 distribution return on investment uses financial-year distribution per security divided by average daily ASX price for that year. The ASX’s product summary labels its yield field “Historical Distribution Yield.” Check each source’s methodology before putting the resulting percentages side by side.
The ASX A-REIT product summary cited here covers the period ending 30 September 2025. It includes historical distribution yield and total-return fields for one month, one year, three years annualised and five years annualised. Its security-level figures are dated, not current; refresh them before making a present-day comparison. ASX A-REIT product summary, September 2025
Put yield beside coverage and total return
A high yield alone cannot show whether distributions are supported by earnings or whether price declines have offset income. Compare distributions with FFO and review payout coverage and issuer guidance. Then include price movement over the same horizon: BDO defines total return as income return through distributions plus capital appreciation through ASX price movement.
BDO’s FY25 survey framework also considers operating cash yield, NTA movement, premium or discount to NTA, the tax-deferred component of distributions and trading liquidity. These measures add context to yield; they do not remove the need to understand the trust’s business and balance sheet. BDO Australia: A-REIT survey methodology and results
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Use a consistent comparison worksheet
For each trust, build a record using the same reporting period and price basis. A compact worksheet helps expose mismatched definitions before comparing outcomes.
| Comparison field | What to record |
|---|---|
| Property exposure | Segment, tenant and lease profile, geography, development exposure and concentration |
| FFO | FFO per security, reporting periods, trend, issuer definition and adjustments |
| Gearing | Issuer-reported percentage, calculation and denominator, debt maturity, interest costs and valuation assumptions |
| Distribution yield | Paid or forecast distribution, period, price date or average-price basis, and any adjustment |
| Coverage and returns | Distribution relative to FFO, payout coverage, guidance, NTA movement and total return over matched horizons |
| Other context | Premium or discount to NTA, tax-deferred distribution component and trading liquidity |
Keep the source and date beside each value. If two issuers define FFO or gearing differently, show the definitions rather than silently treating the numbers as equivalent. If relying on market tables, check the end date: for example, the ASX September 2025 table includes Arena REIT and BWP Group, but its dated snapshot is not a basis for ranking securities today.
Keep sector statistics in their proper timeframe
BDO reported that the S&P/ASX A-REIT 200 Index returned 10.3% in FY25, slightly above the broader ASX 200 return of 10% over that financial year. These are historical index returns, not forecasts or results for a particular trust. BDO Australia: FY25 A-REIT Survey
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