Insights

$418 million logistics deal confirms strong outlook for REITs like this one

Logos’ $418 million transaction highlights the strength of the Australian logistics sector, confirming a strong outlook for select REITs.
The post $418 million logistics deal confirms strong outlook for REITs like this one appeared first on Motley Fool Australia. –

asx shares and REITs outlook represented by man standing on giant 2020 looking out with binoculars

Marking one of the largest Australian industrial transactions of the year, Singapore-listed ARA LOGOS Logistics Trust (SGX: K2LU) has acquired $418 million of logistics assets on Australia’s eastern seaboard. Sydney-based logistics specialist Logos, which runs the trust, managed the deal.

Why did ARA LOGOS Logistics invest in Australian facilities?

As the Australian Financial Review reports, the trust’s manager – ARA Logos Logistics Trust Management Limited (a subsidiary of Logos) is bullish on the outlook for Australia’s industrial and logistics markets:

Australian industrial and logistics market, especially the eastern seaboard cities, continues to be highly sought after by investors due to its strong market fundamentals, limited supply and favourable demographics.

Industrial and logistics investment volumes for the year-to-date ending August 2020 have exceeded $3.5 billion… and 83 per cent of these transactions had taken place during the COVID-19 period since mid-March.

The outlook for Australia’s industrial market remains stable over the long term, underpinned by the fundamental role of logistics in keeping basic day-to-day necessities of Australians in supply, unprecedented infrastructure investment and growth in defensive downstream industries such as e-commerce.

Advantage ASX logistics shares

There were no ASX listed shares involved in the Logos deal. But the $418 million transaction does highlight the strength of shares involved in the Australian logistics sector while many office, residential and retail property-related shares remain under pressure.

One of the shares that’s currently on my radar is the APN Industria REIT (ASX: ADI).

The Australian real estate investment trust (REIT) owns a portfolio of 32 industrial and business park assets in Sydney, Melbourne, Brisbane and Adelaide.

The APN Industria share price is up more than 52% since the 23 March post-panic selling lows but is still down nearly 9% year to date. That puts it right on par with the performance of the All Ordinaries Index (ASX: XAO). Although today, APN Industria outperformed, with the share price falling 0.76% compared to a 1.77% loss from the All Ords by market close.

Now, the APN Industria share price is highly unlikely to see another 51% gain over the next 6 to 7 months. But with the growth of e-commerce continuing to drive demand for well-positioned warehouse and logistics facilities, I believe this is one ASX share to keep an eye on.

APN Industria also pays a 6.5% annual dividend yield, unfranked.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post $418 million logistics deal confirms strong outlook for REITs like this one appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!