These 2 ASX real estate shares could be the best way to invest in property

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Important points

• ASX real estate stocks can provide exposure to the real estate market
• Charter Hall Long WALE REIT owns a large portfolio of long lease commercial properties
• Brickworks is a leader in the building products industry, but also owns other assets with growth potential

Financial experts often speak of different asset classes such as stocks and real estate. But there are a number of ASX real estate stocks that could be better options than real estate.

In other words, the ASX stock market can provide exposure to real estate investments, allowing investors to benefit directly or indirectly from real estate.

With that in mind, here are two ideas:

Charter Hall Long WALE REIT (ASX:CLW)

This is a Real Estate Investment Trust (REIT) that owns commercial properties. These properties are mostly rented to companies and authorities on a long-term basis.

It is invested in a number of core sectors such as office, industrial and logistics, and retail.

At last count, his portfolio consists of approximately 550 properties with an occupancy rate of more than 98% and a property value of $7 billion. The Weighted Average Lease Expiration (WALE) is more than 12 years and offers significant income transparency and stability.

It has built-in growth with its leases and provides growth in its rental income and payouts.

The ASX real estate stock continues to appreciate in value thanks to the current environment, including low interest rates. In its December 2021 update, the company saw real estate valuations on paper rise by 8.1%.

This update meant that net tangible assets (NTA) per unit increased 14.4% to $5.85. The current Charter Hall Long WALE REIT share price is around 15% below the NTA.

Ord Minnett currently rates it as a Buy with a price target of $5.46. The company is expected to pay a dividend yield of 6.3% in FY23.

This ASX property stock offers exposure to domestic housing through its Australian building products business. It has a number of businesses including Austral Bricks, Concrete Products and Bristle Roofing. It has 28 manufacturing facilities and more than 45 design centers and studios across the country.

Brickworks is a 50% shareholder in an industrial property trust with gross assets in excess of $2.5 billion and a long development pipeline. One project that is said to be essentially complete is a large new distribution center for Amazon in Sydney.

The company has expanded into North America and established itself as the largest brick manufacturer in the Northeastern United States.

It also has a large stake in Washington H. Soul Pattinson and Co.Ltd (ASX: SOL), a leading publicly traded investment conglomerate.

The real estate ASX stock’s normal dividend has been maintained or increased every year since 1976. That’s 45 years of stability. Brickworks prides itself on its long history of dividend growth and the stability it provides for shareholders.

Brickworks recently announced it has purchased 121 hectares of land in Bringelly, south west Sydney, for use as a clay resource in support of Austral Bricks. Brickworks is also selling 75 acres of land in Oakdale East, where a brick factory is located, to the property trust. This expands the development pipeline to meet the unprecedented demand for industrial development.

It is rated a Buy by broker Ord Minnett with a target price of $26.20.