The best little property stock on the JSE
Fairvest scoring big wins from a narrow focus
The "bigger is better" mantra in SA’s overtraded shopping centre sector doesn’t necessarily hold true any more. Instead, it seems convenience centres that cater to the daily, basic shopping needs of consumers are becoming a more profitable bet for investors than large regional and super-regional malls. Fairvest Property Holdings is a case in point. It is one of the few retail-focused real estate investment trusts that continues to deliver robust trading figures. The company owns a R2bn portfolio of 41 shopping centres, mostly in rural areas and townships, that cater to lower-income shoppers. The average size of a Fairvest centre is 5,000m², and anchor tenants typically include a Shoprite, Boxer, Spar or Pick n Pay. Fairvest this month reported above-market dividend growth of 9.6% for the six months ending December. That’s the fourth consecutive year that management, under CEO Darren Wilder, has delivered distribution growth of about 10% or more. Vacancies have been well contained at...
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