Property stocks to buy right now
Listed property seems poised for a rebound following a dismal 2018, but income chasers need to be more discerning than ever in their stock selection, writes Joan Muller
Property punters are no doubt still reeling from last year’s value destruction when the SA listed property index (Sapy) tumbled 30% in what was the sector’s worst performance in more than 20 years. For some, the losses were far more pronounced — backers of Rebosis Property Fund B, Resilient Reit, Fortress Reit B, Intu Properties, Nepi Rockcastle, Tradehold, Capital & Regional, Delta Property Fund and Balwin Properties suffered capital losses of between 40% and 70%. The upside of last year’s decline is that it has created cheap buying opportunities for investors who are underweight in property, particularly those looking for a high and growing income stream. At least a dozen SA-focused real estate investment trusts (Reits) are now trading at juicy dividend yields exceeding 11%. The sector as a whole — comprising about 60 counters — is trading at a record 9.3% dividend yield. Though offshore property counters typically trade at lower initial dividend yields than their SA-focused count...