2023 Market Performance

The listed property sector delivered an impressive return of 17.6% for 2023, outperforming the broader S&P/ASX 200 index which delivered a total return of 12.4%.
The result was heavily weighted to strong gains delivered in the fourth quarter, largely due to lower inflation levels recorded in the economy. During the December 2023 quarter the ASX200 A-REIT sector delivered a total return of 16.6%, whilst the ASX 200 delivered a total return of 8.4%.
 
Core Property has ranked 38 property stocks for their total return for the year ended 31 December 2023.
 
18 of the property stocks delivered a positive return and 20 delivered a negative return.
 
4 stocks delivered double digit positive returns for the year with strong returns from Goodman Group (+47.5%), HMC Capital (+47.4%), Stockland (+28.8%) and GPT Group (+16.4%).
 
Goodman Group (ASX: GMG) was the strongest performer, with a total return of +47.5%. GMG was the only listed property fund manager which delivered growth in earnings per share (EPS), with Operating Earnings per Security increasing by a very strong 16.0% during the year.
 
HMC Capital (ASX: HMC) also delivered an impressive total return of +47.4% for the year. Whilst HMC’s Operating Earnings Per Security was -12.9% for the year, the fund manager substantially increased its Assets Under Management by 39.7%, reaching $8.1 billion at June 2023. HMC has targeted the growth to continue, with AUM expected to be $10 billion at year end 2023.
 
The Retail stocks delivered mostly positive returns: Scentre Group (+9.5%), Vicinity Centres (+8.0%), RAM Essential Services Property (+5.0%), HomeCo Daily Needs REIT (+1.4%), Charter Hall Retail REIT (+0.8%), with weaker results from BWP Trust (-5.0%), Region Group (-11.3%) and Newmark Property REIT (-19.0%).
 
The Industrial stocks delivered positive returns: Goodman Group (+47.5%), Centuria Industrial REIT (+9.3%) and Dexus Industria REIT (+1.5%).
 
The Office stocks remained weak: GDI Property (-2.1%), Centuria Office REIT (-3.9%), Elanor Commercial Property Fund (-11.5%) and Australian Unity Office Fund (-16.6%).
 
The listed sector will be reporting their next results in February 2024.