EDITORIAL: The pain is not over for listed property
Analyst forecasts dividend growth from the sector to be a paltry 2% over the next year amid continuing adverse conditions
You would be hard-pressed to find anyone who would disagree that 2018 was the listed property sector’s annus horribilis. After a decade of strong average annual total returns of about 15%, the sector came crashing down with its worst performance in more than two decades in 2018. The FTSE/JSE SA listed property index ended up losing 25.26% based on share price declines and dividends. While most of this was due to the scandal that engulfed the Resilient stable of companies, which collectively lost more than R100bn in 2018 after a sudden sell-off of shares, a depressed economy and a woeful retail environment also dragged down most of the JSE’s property counters. While the Financial Sector Conduct Authority has cleared the Resilient stable of allegations of insider trading, other investigations are continuing. Once they are resolved, investor confidence should improve. Even so, with economic growth sitting at an uninspiring 0.8% for 2018, and retailers delivering disappointing resu...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.