Category: Stock Market

The Charter Hall Retail REIT (ASX: CQR) share price is in focus today after the group reported first half FY26 operating earnings of $75.6 million, up 3.4%, and a statutory profit of $240.7 million.

What did Charter Hall Retail REIT report?

• Operating earnings of $75.6 million, or 13.0 cents per unit, up 3.4% on 1H FY25
• Distribution of 12.8 cents per unit, up 4.1% on 1H FY25
• Statutory profit of $240.7 million
• Net Tangible Assets (NTA) per unit of $4.91, up 5.8% since June 2025
• Balance sheet gearing of 29.2%
• Portfolio occupancy steady at a high 99.1%

What else do investors need to know?

Charter Hall Retail REIT continued to reshape its convenience retail portfolio, investing in new assets while divesting non-core properties. Highlights included increasing net lease assets to 49% of the portfolio and strong rental growth across shopping centres and net lease retail properties.

The REIT agreed to refinance its debt platform, securing a new $1.6 billion facility at a lower margin and longer maturity, helping manage future interest costs. External revaluations pushed up the portfolio’s value by $153 million, with cap rates tightening to an average of 5.55%.

What did Charter Hall Retail REIT management say?

Charter Hall Retail CEO, Ben Ellis, said:

CQR’s convenience retail portfolio has performed strongly across all metrics over the last six months. The supply of new retail property in Australia is currently around 50% lower than levels seen a decade ago. As population growth continues, demand for convenience‑based retail real estate is rising against a backdrop of limited new supply. This supports strengthening rental growth and attractive capital growth for the sector. These dynamics are reflected in CQR’s NTA per unit increasing by 5.8% from $4.64 to $4.91 over the half, driven by strong rental growth, enhanced by cap rate compression.

What’s next for Charter Hall Retail REIT?

Looking ahead, management reaffirmed FY26 operating earnings guidance of at least 26.4 cents per unit, representing 4% growth, and distributions of no less than 25.5 cents per unit, up 3.3%. Several transactions are due to settle in the second half, including the acquisition of three new shopping centres and increasing stakes in high-quality convenience assets.

The REIT will move to quarterly distribution payments from Q1 FY26 and continues to target portfolio curation focused on strong, income-producing retail assets.

Charter Hall Retail REIT share price snapshot

Over the past 12 months, Charter Hall Retail REIT shares have risen 16%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

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The post Charter Hall Retail REIT posts higher earnings and distributions in 1H FY26 appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Charter Hall Retail REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Wesfarmers Ltd (ASX: WES) shares are often seen as a cornerstone stock for long-term Australian investors, and for good reason.

With a diversified portfolio led by Bunnings, Kmart Group, and Officeworks, the company has built a reputation for reliable earnings and dividends.

But does that make Wesfarmers shares a good buy for passive income today?

Long history of payouts

At current prices of $86.19, Wesfarmers shares offer a dividend yield of roughly 2.5%. While that’s not the highest yield on the ASX, dividends are fully franked, which meaningfully lifts the effective yield for many investors.

The company pays dividends twice a year. The company has a long history of maintaining or gradually increasing payouts, particularly since the Coles Group Ltd (ASX: COL) demerger simplified the business and improved cash flows.

Steady, sustainable dividends

Wesfarmers’ dividend policy is conservative and earnings-linked. Management prioritises balance sheet strength and reinvestment while returning surplus capital to shareholders when conditions allow.

Wesfarmers’ approach has resulted in steady, sustainable dividends rather than aggressive payout growth, which tends to appeal to long-term income investors. The forecast on CommSec suggests a grossed-up yield of 3.7%, including franking credits.

Effective profit machine

The company’s biggest strength lies in its cash-generating retail businesses. Bunnings remains a dominant force in home improvement, while Kmart continues to gain market share through its low-cost model.

Wesfarmers continues to find new places to invest for long-term earnings growth, and this makes it a very compelling business. Initiatives include healthcare expansion, selling Anko products internationally, product expansion in Bunnings, and lithium mining.

Wesfarmers shares are not the most defensive stock on the ASX, but the company stands out with a return on equity above 30%. This highlights how effectively the $95 billion company generates profits from the capital retained rather than paid out to shareholders.

Wesfarmers’ diversification provides resilience during economic slowdowns and supports ongoing dividend payments. A strong balance sheet and disciplined capital allocation further underpin income reliability.

Slow dividend growth

That said, Wesfarmers shares aren’t without weaknesses. The headline yield is modest compared to higher-yielding sectors like banks or utilities, and dividend growth is unlikely to be rapid.

Earnings are also exposed to consumer spending cycles, meaning prolonged cost-of-living pressures could weigh on margins and slow dividend increases. Valuation is another consideration, with the stock often trading at a premium due to its quality and defensive appeal.

What next for Wesfarmers shares?

From an analyst perspective, expectations lean toward moderate returns rather than outsized gains. Most forecasts point to continued earnings and dividend growth, but at a measured pace.

Share price upside is generally viewed as limited in the near term, placing the emphasis squarely on income stability and long-term compounding rather than quick capital gains. The average 12-month price target is $81.57, 5% below the current share price.  

Foolish Takeaway

Overall, Wesfarmers looks well-suited to investors seeking dependable, fully-franked income backed by high-quality businesses.

It may not deliver a standout yield today, but for passive investors who value reliability and gradual growth, Wesfarmers remains a solid option.

The post Are Wesfarmers shares a buy for passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX healthcare stocks were not the bell of the ball in 2025. 

In fact, the S&P/ASX 200 Health Care Index (ASX: XHJ) fell almost 25% in that span. 

Two exceptions to this broader fall were Artrya Ltd (ASX: AYA) and 4DMedical Ltd (ASX: 4DX).

These two ASX healthcare stocks have rocketed between 300% and 500% in the last year. 

However, both have dipped substantially in the last couple of weeks. 

They may now be priced at an attractive entry point relative to 52-week highs. 

Artrya

Artrya is an AI-driven medical technology company that assists clinicians in the diagnosis of coronary heart disease. 

Artrya’s Salix Coronary Anatomy is a coronary computed tomography angiography (CCTA) image analysis solution that allows physicians with AI to identify and analyse the extent and type of arterial plaque, and help identify patients at risk of a heart attack.

A year ago, its share price was hovering around $0.83 per share. 

It hit an all-time high last week of more than $5 per share. 

However, the share price has retreated over the last week and now sits significantly below the all-time high at approximately $3.38. 

For prospective investors, all eyes will be on the company’s expansion into the US market. 

On January 30, the ASX healthcare stock released its quarterly activities report.

In the report, John Konstantopoulos, Co-Founder and CEO of Artrya, commented:

This Quarter has been pivotal for Artrya as we continue to build momentum in the U.S. market. 

We achieved our first fee-per-scan revenues from the FDA-cleared Salix® Coronary Plaque module with Tanner Health, marking the commencement of recurring U.S. revenues alongside subscription income. 

With Northeast Georgia Health System and Cone Health also executing commercial agreements, all three of our U.S. foundation partners have now converted to commercial customers, establishing a strong platform for expansion in 2026.

Last month, Wilson Asset Management listed this ASX healthcare stock as a buying opportunity.

The recent dip in share price could present an opportunity for prospective investors. 

4DMedical

4DMedical is a medical technology company working in the field of respiratory imaging and ventilation analysis in the treatment of lung and respiratory diseases.

Its share price is up almost 500% in the last year. 

However, it has shed almost 40% in the last 3 weeks of trading. 

This includes a drop of more than 6% yesterday, closing at $3.15. 

Estimates from brokers indicate this could be an attractive entry point for investors. 

A recent share price target from Bell Potter of $4.50 indicates a potential upside of 42.86%. 

The broker said 4DX has never been better positioned to make major inroads into the US market. 

The post Two booming ASX healthcare stocks investors should be buying the dip on appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The News Corporation (ASX: NWS) share price is on the move today after the company reported second quarter fiscal 2026 revenues of $2.36 billion, up 6% year over year, and a 9% lift in Total Segment EBITDA to $521 million.

What did News Corp report?

• Second quarter revenue: $2.36 billion, up 6% from $2.24 billion last year
• Net income from continuing operations: $242 million, down 21% (prior year included an $87 million gain)
• Total Segment EBITDA: $521 million, up 9%
• Reported EPS: $0.34; Adjusted EPS: $0.40 (up from $0.33 in prior year)
• Dow Jones revenue grew 8% to $648 million; Record digital advertising revenue
• Interim dividend: $0.10 per share, payable 8 April 2026

What else do investors need to know?

News Corp’s results were powered by strong growth in its Dow Jones, Digital Real Estate Services, and Book Publishing businesses. Dow Jones saw an 8% boost in revenue, driven by double-digit growth at its Risk & Compliance division and a big jump in digital advertising.

REA Group Ltd (ASX: REA), which is majority-owned by News Corp, helped lift real estate services revenue by 8%, while Move (operator of Realtor.com) added 10% growth amid increased focus on premium products. Book Publishing revenue rose 6%, helped by new acquisitions and popular titles, although segment profits dipped due to a one-off $16 million inventory write-off at HarperCollins.

What did News Corp management say?

Chief Executive Robert Thomson said:

We are delighted to report excellent second quarter results with both revenue and profitability growth accelerating from the prior quarter, and we see favorable signs for the second half of our fiscal year. Revenues increased 6 percent to $2.4 billion for the quarter and profitability improved by a robust 9%. The second quarter results were driven by sustained growth at Dow Jones and Digital Real Estate Services, which both achieved double-digit profit growth and have started the calendar year strongly. Given the current trajectory of our core drivers, we believe prospects for the third quarter are auspicious…We also continued to actively execute on our expanded buyback program, which has been running at over four times the prior rate, reflecting our confidence in News Corp’s strong cash position and belief in the intrinsic value of the Company.

What’s next for News Corp?

The company will host a Dow Jones investor briefing in March 2026, highlighting the momentum in its information services division. Management says it remains confident in News Corp’s prospects for the upcoming quarter, looking to further leverage digital subscriptions, advertising, and real estate services.

News Corp is also broadening partnerships, including expanding its AI agreement with Bloomberg for Dow Jones content. The board has reinforced its positive view of future performance by maintaining its share buyback program at an accelerated pace and declaring another interim dividend.

News Corporation share price snapshot

Over the past 12 months, News Corporation shares have declined 28%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post News Corp reports robust Q2 FY26 earnings growth appeared first on The Motley Fool Australia.

More reading

• Charter Hall Retail REIT posts higher earnings and distributions in 1H FY26
• REA Group earnings: Profit and dividend up in strong H1 FY26 result
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• Harness momentum with this new ASX ETF
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Pro Medicus Ltd (ASX: PME) shares have been caught up in the brutal sell-off that has swept through AI-exposed software-as-a-service stocks.

Concerns that rapid advances in artificial intelligence could make existing software platforms redundant have weighed heavily on sentiment, and the high-quality healthcare technology company has not been spared.

As a result, Pro Medicus shares have fallen more than 40% over the past 12 months and last traded at $164.93.

While this is disappointing, could it have created an incredible buying opportunity? Let’s see if Bell Potter thinks this stock could surge over the remainder of 2026.

A high-quality Australian stock

Bell Potter has long been positive on Pro Medicus and believes it stands out as one of the highest-quality businesses on the Australian share market. The broker said:

Pro Medicus is among the highest quality companies on the ASX. CY25 was yet another banner year with 10 major contract announcements, totalling minimum revenues of $445m.

These contract wins matter. Pro Medicus sells enterprise-scale radiology software into major hospital networks, and contracts are typically long-term, sticky, and difficult for competitors to displace once embedded.

Strong earnings growth expected

Despite its already significant scale, Bell Potter believes Pro Medicus still has a long runway for growth ahead. The broker expects earnings growth to remain exceptionally strong over the next two years. It said:

We expect EPS growth of 36% in FY26 followed by 30% in FY27. The company continues to announce new contract wins on a regular basis as the drivers of interest in its product offering remain firmly in place.

Structural tailwinds in radiology

One reason Bell Potter remains confident is the broader structural shift underway in the global radiology industry. The broker notes that “the entire radiology industry is headed to cloud based (off premises) archiving.”

That transition plays directly into Pro Medicus’ strengths. Its Visage platform is designed for speed, scale, and performance, critical requirements as imaging datasets become larger and more complex. Bell Potter explains:

Put simply, the Visage 7 viewer, Workflow and Archive are the fastest and most advanced tools for the retrieval and viewing of large radiology files. The platform is immensely scalable and relatively easily installed, providing it with a sustainable competitive advantage over the likes of peers Intelerad, Sectra, Philips and GE Healthcare.

Are Pro Medicus shares ready to surge?

Bell Potter currently has a buy rating and a $320.00 price target on the Australian stock.

Based on its latest share price of $164.93, this implies almost 95% upside over the next 12 months.

The post 1 Australian stock ready to surge in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The REA Group Ltd (ASX: REA) share price is in focus today after Australia’s top property platform delivered half-year revenue of $916 million, up 5% year-on-year, and lifted its net profit from core operations by 9% to $341 million.

What did REA Group report?

• Revenue from core operations: $916 million, up 5% year-on-year
• EBITDA (excluding associates): $569 million, up 6%
• Net profit from core operations: $341 million, up 9%
• Interim dividend: $1.24 per share fully franked, up 13%
• Australian residential revenue: up 7%; commercial and new homes revenue: up 10%
• Announced on-market share buy-back up to $200 million

What else do investors need to know?

REA Group reported double-digit growth in its Buy Yield, helping offset a 6% dip in national property listings. Its flagship site, realestate.com.au, saw record online audiences, boasting 12.7 million unique visitors each month, plus growth in buyer and seller activity.

The company completed a strategic reset in India, exiting non-core businesses and refocusing on its core Housing.com platform. REA is rolling out AI-powered features, like natural language search, to drive innovation and better consumer engagement across its platforms.

What did REA Group management say?

REA Group CEO Cameron McIntyre said:

REA Group’s first half performance was underpinned by strong double-digit yield growth in our core residential business. Our focus on richer, more immersive consumer experiences supported record audience and strong engagement. Our customers continued to recognise the value of our premium products and their ability to maximise campaigns and support stronger sales results.

The pace of technological change is creating significant opportunity. REA’s unparalleled audience and proprietary data provide a strong foundation for harnessing AI as we continue to change the way Australians buy, sell and rent property.

What’s next for REA Group?

REA expects strong buyer demand to continue in Australia’s property market, especially in Melbourne and Sydney where fresh listings are rising. However, Perth and Brisbane have seen slower activity, which is expected to weigh on national listing volumes.

The group anticipates residential Buy yield growth of 12–14% and plans to keep investing in new technology, including AI, to enhance its property platforms. REA’s focus remains on sustainable cost management, further innovation, and maintaining its leadership in online real estate.

REA Group share price snapshot

Over the past 12 months, REA Group shares have declined 28%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post REA Group earnings: Profit and dividend up in strong H1 FY26 result appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Rio Tinto Ltd (ASX: RIO) share price is in focus today after the company confirmed it will not proceed with a possible merger or business combination with Glencore. Management stated the decision was driven by a focus on long-term value and delivering leading shareholder returns.

What did Rio Tinto report?

• Confirmed it is no longer considering a merger or business combination with Glencore.
• Decision made following a disciplined review process prioritising shareholder value.
• Announcement made under Rule 2.8 of the City Code on Takeovers and Mergers.
• Restrictions on future offers now apply, with specific exceptions outlined by the Code.

What else do investors need to know?

Rio Tinto reviewed the potential combination with Glencore after an earlier announcement in January 2026, but ultimately determined an agreement could not be reached for shareholders’ benefit. This reflects the company’s commitment to its capital management strategy and disciplined growth plans, as emphasised at the December 2025 Capital Markets Day.

Importantly, Rio Tinto reserves the right to revisit the decision under certain circumstances, such as a third party making a firm offer for Glencore or a material change of circumstances as defined by takeover regulations. 

What’s next for Rio Tinto?

Rio Tinto says it remains focused on prioritising long-term value creation and leading returns for shareholders. The company will continue to assess opportunities through its established disciplined approach and maintain its commitment to capital allocation guidelines.

Investors can expect Rio Tinto to pursue growth and value initiatives in line with its strategic objectives, as outlined at the company’s Capital Markets Day. Any future developments regarding mergers or acquisitions will be weighed carefully to ensure they serve shareholder interests.

Rio Tinto share price snapshot

Over the past 12 months, Rio Tinto shares have risen 31%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Rio Tinto confirms no merger with Glencore after review appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Australian Dollar (AUD) has made significant gains on the United States Dollar (USD) so far this year. Savvy investors may be contemplating how this impacts ASX shares. 

Zooming out even further, the AUD has rallied from its post-Covid low of US59.6¢ in April last year, to recently hit a three-year high of US70.5¢.

Why is the AUD gaining value?

In simple terms, the AUD is stronger against the USD mainly because Australian interest rates are rising while US rates are expected to fall. 

The RBA’s rate hike, combined with anticipated Fed cuts, have widened the interest rate gap in Australia’s favour, making the AUD more attractive to global investors. 

This is reinforced by strong commodity prices, risk-on global sentiment, and broad US dollar weakness, all of which support demand for the AUD.

A new report from Canaccord Genuity and Wilsons Advisory said the RBA is expected to raise the cash rate again later this year. 

The US Federal Reserve is still expected to cut rates multiple times.

What does this mean for ASX shares?

The report from Canaccord Genuity also highlighted what this divergence could mean for ASX shares. 

According to Greg Burke, Equity Strategist, the rising AUD creates a mix of headwinds and tailwinds for Australian equities. 

On one hand, a stronger local currency provides headwinds for the large number of ASX 200 companies that generate earnings overseas – currently ~40% of the index’s profits – due to adverse currency translation effects. 

On the other hand, somewhat counterintuitively, periods of AUD strength have historically coincided with S&P/ASX 200 Index (ASX: XJO) outperformance.

Metals & mining the clear winner 

The report identified that the Materials sector has historically exhibited by far the strongest relationship with the AUD and the best performance during periods of AUD appreciation.

Mr Burke said this correlation does not imply causation. 

Rather, this relationship reflects that both the AUD and commodity prices (and consequently, miners) tend to move together, as they benefit from the same underlying macro forces. These include robust global growth, improved terms of trade, broadly positive investor sentiment and a weaker USD. 

When combined with tight supply dynamics and structural demand drivers for key commodities, these factors provide the necessary foundation for continued Materials sector outperformance.

How to target the sector

Some of Australia’s largest companies by market capitalisation are metals and mining shares. 

In fact, ASX materials shares make up roughly 24% of the ASX 200. 

Some of the largest include: 

• BHP Group Ltd (ASX: BHP)
• Rio Tinto Ltd (ASX: RIO)
• Fortescue Ltd (ASX: FMG)

Alternatively, investors can get broad exposure to this sector with ASX ETFs.

Options include: 

• BetaShares S&P/ASX 200 Resources Sector ETF (ASX: QRE)
• VanEck Australian Resources ETF (ASX: MVR)
• SPDR S&P/ASX 200 Resources Fund (ASX: OZR)

The post Which ASX shares benefit from a stronger AUD? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX REIT shares come with plenty of positives. 

A real estate investment trust (REIT) is a company that owns and operates property assets that typically produce income.

REITs can have various property types in their portfolios, or they might specialise in just one type. Some focus on commercial real estate, such as offices, hospitals, shopping centres, warehouses, and hotels.

Investors may choose to target this asset because they typically provide predictable income through regular distributions, supported by rental cash flows and a tax-efficient structure. 

REITs also offer potential capital growth and diversification benefits, making them attractive as a long-term investment option.

Recent underperformance 

Despite the favourable aspects of REITs, over the last few years, this asset class has largely underperformed relative to other sectors. 

Many REITs struggled through and post pandemic due to market shifts. 

For example, some REITs own and operate office buildings. 

COVID-driven shifts in work patterns combined with poorly timed new supply drove vacancies higher, and rents lower across Australia’s major CBDs, with asset values following suit.

Similar headwinds impacted REITs engaged in retail spaces like shopping centres. 

However new insight from VanEck suggests the tide could be turning after years of underperformance. 

Supply demand dynamics improving

According to VanEck, office REITs were among the best-performing A-REIT subsectors in 2025. 

In a new report, the ETF provider said this momentum could continue in 2026 for several reasons. 

VanEck said supply pipelines are thinning, economic conditions are favourable and elevated 10-year yields may begin to provide a more supportive backdrop for sector performance.

We think the medium-term outlook for office REITs in particular is positive, albeit one that still demands selectivity.

Pranay Lal, Portfolio Manager, VanEck said vacancy rates have stabilised and are expected to trend lower, with the supply/demand office space dynamics potentially improving. 

High replacement costs, restrictive financing conditions and limited development pipelines are likely to constrain further supply, with leading leasing agent Jones Lang LaSalle Incorporated (JLL) forecasting new supply to be almost half the 20 year calendar average.

Economic conditions favourable

According to VanEck, valuations across office REITs are closely linked to broader macroeconomic conditions. 

Periods of strong economic activity, low unemployment and robust population growth have historically been supportive of structurally lower vacancy rates.

Australia has seen a marginal acceleration in GDP growth, supported by improving business investment and consumer spending. 

Additionally, unemployment is near a historical low and forecast to stay in the 4% range over the medium term.

This backdrop further supports a recovery in CBD office demand.

Office and retail REITs are currently offering compelling value, we think. Both sectors are trading at discounts to net tangible assets, suggesting scope for a re-rating toward more normalised valuation levels. This potential mean reversion could act as a catalyst for relative outperformance.

How to gain exposure

For investors looking to gain exposure to this sector, there are a few options to consider. 

For pure-play office REITs, Centuria Office REIT (ASX: COF) owns a portfolio of high-quality office buildings across Australian capital cities and key markets. 

Other office REIT options include: 

• Dexus (ASX: DXS)
• Charter Hall Group (ASX: CHC)
• The GPT Group (ASX: GPT).

Another option is to target a thematic ASX ETF such as VanEck Vectors Australian Property ETF (ASX: MVA). 

MVA ETF gives investors exposure to a diversified portfolio of Australian REITs, however this isn’t exclusively office owners. 

The post Why 2026 could be the year of the REIT rebound appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With reporting season underway and market volatility still creating opportunities, February could be a good time to take a closer look at high-quality ASX growth shares that analysts believe are trading below their true value.

But which ones tick these boxes?

Listed below are three ASX growth shares that analysts are tipping as buys. Here’s what they are recommending to clients:

Aristocrat Leisure Ltd (ASX: ALL)

The first ASX growth share to consider in February is Aristocrat Leisure Ltd.

Aristocrat is one of the world’s leading gaming technology companies, with operations spanning poker machines, real money gaming, and mobile games. Its strength lies in high-quality and popular game content and long-term relationships with gaming operators around the world.

Bell Potter is bullish on the company’s outlook. The broker believes Aristocrat is well placed to benefit from ongoing growth in digital gaming and continued investment in regulated gaming markets globally.

It recently put a buy rating and $80.00 price target on its shares. Based on its current share price of $52.22, this implies potential upside of over 50%.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX growth share that analysts are excited about is Lovisa Holdings Ltd.

Lovisa is a fast-growing fashion jewellery retailer that is in the middle of an ambitious global expansion. At last count, the company was operating 1,075 stores across more than 50 markets, with new store openings continuing at pace.

Morgans has named Lovisa as one of its top picks in the retail sector, highlighting the company’s scalable store model and strong brand appeal. If Lovisa continues executing on its international rollout, the business could look materially larger over the next few years.

The broker recently put a buy rating and a $40.00 price target on its shares. Based on its current share price of $32.09, this suggests that upside of approximately 25% is possible between now and this time next year.

NextDC Ltd (ASX: NXT)

A final ASX growth share to buy in February could be NextDC.

NextDC is one of the Asia-Pacific region’s leading data centre-as-a-service providers, delivering critical power, security, and connectivity to cloud platforms, enterprises, and government customers. Its network of centres continues to expand across Australia and the broader region.

Morgans recently upgraded NextDC shares. The broker sees long-term demand for data centre infrastructure being driven by cloud adoption, data growth, and emerging AI workloads, all of which underpin NextDC’s growth outlook.

It has a buy rating and $19.00 price target on its shares. Based on its current share price of $13.22, this implies potential upside of more than 40%.

The post 3 stellar ASX growth shares that could rise 25% to 50% appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 5 ASX 200 shares forecast to soar 100% (or more) in 2026
• Why Amcor, Lovisa, Regal Partners, and SKS shares are pushing higher today
• These ASX shares look cheap and could reward patient investors
• How much could a $10,000 investment in these ASX 200 stocks be worth if they hit 12 month targets?

Motley Fool contributor James Mickleboro has positions in Lovisa and Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.