August 2026 A-REIT Results Preview

Research evidence excerpt

August 2026 A-REIT Results Preview

Australia | REITs EquityJulyResearch22, 2026

KEY STOCKS FEATURED INCLUDE:August 2026 A-REIT Results Preview

REITs saw a macro-driven de-rating in 1Q CY26, followed by a sharp TICKER RATING PRICE TARGET

selective recovery and subsector dispersion in 2Q CY26. Rate expectations ARF AU BUY AUD3.62

have been wound back, and we would expect bond yields to be less of CNI AU BUY AUD2.65

headwind to stock performance in 2H CY26. Most REITs present value, with BWP AU HOLD AUD3.98

low expectations & sentiment implied by earnings multiples. In a higher rate CIP AU BUY AUD3.36

environment, we think positive growth rates implied by initial FY27 guides COF AU HOLD AUD0.80

could help the sector re-rate

2026 YTD recap | XPJ (-8%): 2026 YTD large cap REIT performance has been book-ended by KEY CHANGES INCLUDE:

VCX (+3%) and SGP (-30%). Despite YTD weakness, REITs staged a sharp recovery over the

TICKER RATING PRICE TARGET

past 3+ months, up +12% from late-March lows, with the rebound led by DC exposed names

(DGT +58%; GMG +18%) and mall landlords (SCG +19%; VCX +18%). We still see no signs of a ARF AU BUY AUD3.62 (AUD3.86)

re-rating across residential exposed stocks despite trading at heavily depressed multiples. CNI AU BUY AUD2.65 (AUD2.66)

CIP AU BUY AUD3.36 (AUD3.48)

Highest conviction ideas: COF AU HOLD AUD0.80 (AUD0.94)

CHC (BUY) – $33.82 PT & 48%upside: A record year for capital raising & deployment•

position CHC well to significantly grow funds management earnings in FY27+. Three

guidance upgrades in FY26 highlight momentum and support our view that flows lead

deployment, and deployment leads earnings. Capital raising velocity accelerated in 3Q26

($1.7bn > $1.6bn in 2Q26) despite global uncertainty and higher bond yields. FY26 OEPS