Property investors will have to brace themselves for lower income returns as negative rental reversions and rising vacancies start to squeeze dividend growth.A number of real estate investment trusts (Reits) have already reported flat or even negative dividend growth for the June and August results periods, including the likes of Octodec Investments, Delta Property Fund, Emira Property Fund and Tower Property Fund. In 2016, the listed property sector achieved an average 11% dividend growth (Stanlib figures). While sector heavyweight Redefine Properties managed to achieve an inflation-beating 7% growth in dividend payouts for the year ending August, management warned at the results presentation earlier this week that this level won’t be maintained in 2018. Redefine CEO Andrew Konig says it is becoming increasingly difficult for property companies to continue to deliver inflation-beating dividend growth given the many political, policy and economic headwinds. Most property stocks are ...
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.