Home is where the money is
Will local property stocks outshine offshore counterparts?
An ongoing search for yield continues to support demand for property scrip
SA-focused property stocks are likely to again outperform their JSE-listed offshore counterparts this year. Last year’s divergence in the share-price performance between the JSE’s SA and offshore property stocks seems set to continue into 2017, with former rand-hedge market darlings such as Capital & Counties Properties (Capco), New Europe Property Investments, Intu Properties and Tradehold extending their losses in recent weeks. Year-to-date (to February 6) declines have been led by offshore counters exposed to the UK, no doubt fuelled by the ongoing uncertainty around the timing of Britain’s exit from the EU and a still-strong rand. London-focused Capco has shed 7% since the beginning of the year, which means the owner of trendy mixed-use precinct Covent Garden has now lost more than 55% of its value since early 2015. Other UK-focused stocks such as Capital & Regional, Intu Properties, Redefine International, Stenprop and Tradehold — retail tycoon Christo Wiese’s UK and African pr...
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