The significance of leisure property in property portfolios in Australia

Abstract

Recent years have seen an increased attention given to the property investment opportunities available from the leisure property sector. This paper will assess the signifi cance of leisure property in property portfolios in Australia; particularly in listed property trusts (LPTs) and highlighting issues such as the current portfolio levels and the leading property funds in the leisure property sector. A leisure property LPT performance index is established and leisure property risk-adjusted performance analysis carried out over between 2000 and 2006, as well as the portfolio diversifi cation benefi ts of the leisure property are assessed. Compared to the other LPT sectors, leisure property LPTs have shown an outstanding performance, as well as providing strong risk-adjusted returns and portfolio diversifi cation benefi ts compared to the other LPT sectors and the major asset classes. The future implications for leisure property investment in the UK are also highlighted.