For income-focused investors, Real Estate Investment Trusts (REITs) listed on the Australian Securities Exchange (ASX) offer a compelling way to generate steady cash flow. Known for their high dividend yields and property-backed portfolios, REITs play a vital role in diversifying investment portfolios while providing exposure to Australia’s commercial and residential property markets.
As economic uncertainty and inflationary pressures affect other asset classes, REITs remain attractive due to their reliable income streams and defensive characteristics. This article explores the top high-dividend REITs in Australia, listed on the ASX, that offer sustainable income and long-term growth potential.
What Are REITs?
REITs are publicly traded companies that own, operate, or finance income-generating real estate assets. These include office buildings, shopping centres, industrial warehouses, healthcare facilities, and residential developments. By law, REITs must distribute at least 90% of their taxable income to shareholders, making them ideal for income investors.
Australian REITs (commonly referred to as A-REITs) are traded on the ASX and are subject to stringent regulatory oversight. Many investors are drawn to REITs for their transparency, liquidity, and consistent dividend payouts.
1. Charter Hall Retail REIT (ASX: CQR)
Charter Hall Retail REIT is one of Australia’s leading retail-focused REITs, with a diversified portfolio of supermarket-anchored shopping centres across urban and regional areas. Tenants include Coles, Woolworths, and ALDI, providing stability through long-term leases with essential service providers.
CQR has delivered resilient performance despite the challenges in the retail sector, supported by strong tenant retention and consistent foot traffic.
Dividend Yield (2025 est.): ~6.0%
Why Invest?
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High-quality, necessity-based retail tenants
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Defensive income stream
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Strong distribution track record
2. Scentre Group (ASX: SCG)
Scentre Group owns and operates Westfield-branded shopping centres across Australia and New Zealand. While traditional retail has faced headwinds from e-commerce, Scentre’s focus on prime urban retail destinations and redevelopment projects has helped maintain occupancy rates and tenant demand.
With a recovering retail environment and an active asset recycling strategy, SCG is positioned to continue offering a strong income yield to investors.
Dividend Yield (2025 est.): ~5.5%
Why Invest?
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Premium retail property assets
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Strategic urban locations
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Consistent income with long-term growth potential
3. Dexus (ASX: DXS)
Dexus is one of Australia’s largest diversified property groups, with a focus on office, industrial, and healthcare real estate. It also manages one of the country’s biggest unlisted property funds. While the office sector faces structural changes due to hybrid work models, Dexus’s portfolio includes high-quality, centrally located assets.
The company has been diversifying into logistics and healthcare, which are more resilient in the post-COVID environment. Dexus maintains a disciplined capital strategy and a strong development pipeline.
Dividend Yield (2025 est.): ~6.2%
Why Invest?
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Blue-chip commercial properties
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Diversified income base
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Growing exposure to healthcare and logistics
4. Region Group (ASX: RGN)
Formerly known as Shopping Centres Australasia Property Group (SCP), Region Group focuses on neighborhood and sub-regional shopping centres anchored by supermarkets. Its consistent performance comes from long-term leases with essential services, making it one of the most defensive REITs in the ASX space.
With inflation-linked leases and a geographically diverse portfolio, Region Group offers a compelling combination of yield and stability.
Dividend Yield (2025 est.): ~6.5%
Why Invest?
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Supermarket-anchored retail assets
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Reliable, recurring income
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Conservative gearing and strong management
5. Arena REIT (ASX: ARF)
Arena REIT invests in social infrastructure properties such as childcare centres and healthcare facilities. This niche positioning gives it exposure to essential services that are less sensitive to economic cycles. ARF benefits from long-term, inflation-linked leases and strong tenant demand.
Its strategy of investing in growth sectors like early education and healthcare ensures a steady and predictable income stream, with inflation protection built into lease agreements.
Dividend Yield (2025 est.): ~5.7%
Why Invest?
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Essential services-focused portfolio
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Long-term, inflation-linked leases
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Strong ESG credentials and stable income
Why Choose High-Dividend REITs?
1. Reliable Income
Most REITs distribute income quarterly or semi-annually, offering regular payouts that are especially attractive in low-interest environments or during market volatility.
2. Inflation Protection
Many REIT lease agreements include rental increases tied to CPI (Consumer Price Index), helping investors keep up with inflation.
3. Diversification
REITs offer exposure to physical property assets without the high capital requirements of direct property investment.
4. Liquidity
Unlike physical property, REITs are traded on the ASX, providing liquidity and flexibility for portfolio management.
Risks and Considerations
While REITs are generally considered defensive, they’re not without risks. Rising interest rates can impact borrowing costs and property valuations. Economic downturns can also reduce tenant demand and increase vacancy rates, particularly in retail and office sectors.
Before investing, consider:
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The REIT’s gearing (debt) levels
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Property sector exposure (retail, office, industrial)
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Lease terms and occupancy rates
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Management track record
Conclusion
High-dividend REITs on the ASX offer a practical and effective way for investors to generate stable, long-term income. With a wide range of options—from retail and office to healthcare and infrastructure—REITs can serve as core components in any income-focused or diversified investment portfolio.
As Australia’s real estate market evolves with demographic and economic shifts, REITs that focus on essential services, strategic locations, and inflation-resistant leases are likely to deliver both income and capital appreciation. For those seeking passive income with real-asset backing, ASX-listed REITs remain a top choice.
