Moody’s expects SA’s Reits to weather low economic growth
Ratings agency says it expects the four SA real estate investment trusts to remain resilient due to quality properties in prime locations and offshore exposures
Moody’s expects the four South African real estate investment trusts (Reits) it provides credit ratings for to weather the country’s low economic growth and other problems. Moody’s rates Growthpoint as Baa2 and Redefine, Fortress and Hyprop as Baa3. It said in a note on Thursday it expected their performance "to remain resilient, thanks to quality properties in prime locations, broad sector/tenant diversification and offshore property exposures". Fortress’s leverage ratio (adjusted gross debt/gross assets) of 24% is the strongest for its rating, followed by Growthpoint’s at 33%. Liquidity positions are well managed, with good access to equity and debt capital markets, the report said.
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.