Where to place your property bets
There’s plenty of rich pickings to be had among the JSE’s smaller property plays – provided you’re a patient punter with a higher risk appetite, writes Joan Muller
The days of property heavyweights such as Growthpoint, Redefine, Hammerson, Nepi Rockcastle, Resilient and Fortress trading at market caps north of R50bn, sizeable premiums to NAV of 30% or more and dividend yields below 7% seem a distant memory.
Over the past six to 12 months, property share prices have been decimated — more than 20 of the JSE’s 50-odd real estate counters have seen discounts to NAV widen to a colossal 75% or more. In addition, at least a dozen stocks are trading at ridiculously high dividend yields of between 30% and 70%. That’s in stark contrast to the average 10%-12% on offer only six months ago...