Rebound for listed property a possibility in 2019
Listed property could achieve a double-digit return in 2019 after experiencing its worst period in more than 20 years
Listed property could achieve a double-digit total return in 2019 as it rises from the ashes of its worst year in decades. Asset managers say that the sector, which is valued at about R700bn, could achieve a total return of as much as 15% in 2019, taking capital and income growth into account, as long as no freak events occur. This would be a significant turnaround, with the sector having lost more than 20% in 2018 so far. Property companies listed on the JSE, which mostly include income-paying real-estate investment trusts (Reits) have suffered in 2018, with many of their share prices falling significantly. Listed property has registered a negative return of 21% in 2018, following the collapse in the share prices of the Resilient group of companies, which have seen about R120bn wiped off their market capitalisation. These companies, including Resilient, Fortress, Nepi Rockcastle and Greenbay Properties, all experienced a strong sell-off in shares in January and their prices have no...
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