LISTED REAL ESTATE
Property investors told to brace for lower dividends
Listed real estate funds may have to pay lower dividends if poor economic growth continues over the next three to five years, says Investec Property Fund CEO Nick Riley. Listed property has been on a relatively consistent run over the past few years, but the sector is facing challenges and landlords have warned that fund managers need to temper their dividend growth expectations. The FTSE/JSE South African listed property index, which contains 20 of the best property stocks, managed a total return including capital and dividend growth of 17.2% in 2017; 10.2% in 2016; 8% in 2015; 26.6% in 2014; 8.4% in 2013; and 35.9% in 2012. So far in 2018 it has lost about 24% in rand terms, partly because of weakness in the Resilient stable of companies, which makes up close to a quarter of the index, as well as a weak consumer environment and rising bond yields. Head of listed property funds at Stanlib Keillen Ndlovu said the performance of the property sector generally tracked bonds. And with b...
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