CEOs of South African property companies with exposure to UK property are confident they will weather the fallout after the l Brexit vote.They believe that the capital losses they have suffered will be temporary, and that market sell-offs in shares and a downturn in sentiment are due to severe market over-reaction.When the Brexit result was announced on June 24, many of these companies’ share prices were battered. They have recovered only slightly. Intu Properties, an owner of some of the best rated shopping malls in the UK, and the largest property stock on the JSE, has seen its share price fall about 24% year to date. Redefine International’s share price has lost about 28%.Texton Property Fund, which has half of its portfolio in SA and half in the UK, has also experienced share price depreciation, down about 24% year to date.These companies are real estate investment trusts (Reits), which means that they pay out most of their earnings as income to shareholders.Redefine Internation...
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