One of the highest-returning property stocks of the past decade, Resilient is set to fall out of the JSE top 40 at the end of February, having lost nearly half its value this year. It could be joined by its associate, Fortress. This will result in a rebalancing by tracker funds and the weight of Resilient within the South African listed property (SAPY) index will be reduced. Once these processes are complete, the bleeding of the Resilient group of companies’ share prices should stop, according to Len van Niekerk, a senior property analyst at Nedbank CIB. Resilient, Fortress, Nepi Rockcastle and Greenbay Properties are part of the Resilient group of companies. In mid-January, they were rumoured to be the target of short-seller Viceroy Research but the US group instead released a report on Capitec at the end of that month. Nevertheless, some hedge funds and short-term investors have shorted the shares of the group’s members. Last Friday, a 50-page report by 36ONE Asset Management, whi...
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