Octodec: Attractive proposition for income chasers
Octodec is one of the biggest residential landlords in the Pretoria and Joburg CBDs
It seems property punters are starting to increase their weighting to SA-biased stocks again, albeit selectively. One of the few local mid-cap counters that has re-emerged on investor radars in recent months is Gauteng-focused Octodec Investments. Its share price is up 14% year to date, ahead of the SA listed property index’s (Sapy) meagre 2%.
Octodec is one of the biggest residential landlords in the Pretoria and Joburg CBDs. Its rental flat portfolio, aimed primarily at lower-to middle-income tenants, contributes 32% of the fund’s rental income. The company also owns a sizeable inner-city retail portfolio and several suburban shopping centres. Retail contributes 24% of rental income while offices, industrial buildings and other (auto dealerships, health care and hotels) contribute 16%, 7% and 11.5% respectively.