JSE investors who own shares in property stocks that are exposed to the UK must have had a few sleepless nights since Britain’s decision to exit the European Union on June 23.Currently, no fewer than 16 of the JSE’s property counters own real estate in the UK, either directly or indirectly via other listed vehicles. Some are 100% invested in the UK while others only have partial exposure. Either way, most of these counters lost at least 10%-20% of their value on the day Brexit was announced.London-focused Capital & Counties Properties (Capco) was punished more harshly than any other rand hedge counter on the JSE. The share price dived 33% in the first two weeks after Brexit, bringing the total drop to nearly 45% from its December record high of just more than R100. That translated into value destruction of some R48bn in terms of market cap wiped out in the year to date (to July 8).What makes Capco’s extensive share price losses particularly hard for South African investors to swallo...
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