SHARE PRICE RECOVERY
Why property investors need to bide time
JSE property investors who have suffered financial pain in 2018 following a slump of more than 20% in the South African listed property index in the year to date are no doubt hoping for a recovery in share prices sooner rather than later. However, property analysts are not expecting a marked improvement in investor sentiment until the Financial Sector Conduct Authority releases its findings into allegations of share price manipulation and insider-related trading levelled against the Resilient group. Resilient Reit and its associated companies — Fortress Reit, Nepi Rockcastle and Greenbay Properties — have been hit by a sharp sell-off following the release of negative reports about the group earlier in 2018. That has had a negative knock-on effect on overall investor sentiment.
Appetite for listed property has been further diminished by the lower-than-expected dividend growth numbers that have been reported in the year to date by a number of property stocks due to high vacancie...