Annus horribilis for property as the fallout from Resilient stable continues to weigh on sector
The prices of the 20 largest property stocks are down 28% in the year to date
The fallout from the Resilient scandal, coupled with worse-than-expected earnings growth for the June reporting period, continues to plague the listed property sector. In 2018 it is realising negative returns for the first time since the 2008 global financial crisis. In fact, 2018 will deliver the worst returns for listed property investors in more than 20 years if there is not a miraculous recovery in the next two months.
The share prices of the 20 largest property stocks are down 28% year to date thanks to a selloff in the Resilient stable of companies as well as reduced investor appetite for listed property generally. The total return on these stocks is only improved slightly when dividend growth is included. The FTSE/JSE SA Listed Property Index (Sapy), which includes the top 20 liquid real estate companies by full market capitalisation with a primary listing on the JSE, is down close to 23% in the year to date in terms of total capital and income returns...
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