New plans to enhance financial reporting in listed real estate sector
The corporate governance guidelines are due to be released later in 2019
A new set of corporate governance guidelines is on its way for the JSE’s struggling real estate sector, which in 2018 delivered its worst performance since the formation of the SA Listed Property Index (Sapy) in 2002. This was a result of the scandal around the Resilient group of companies.
Analysts say the real estate investment trust (Reit) sector has to pull up its socks and provide better disclosure as it tries to lure back investors. With this in mind, the SA Reit Association, which represents all the JSE’s Reits, worth a total of about R330bn, is updating its Best Practice Recommendations (BPR) for the first time since they were introduced in 2016. Reits differ from property developers as they have to pay out 75% of their income as dividends. Many investors had lost interest in listed property after a massive sell-off in shopping centre owner Resilient and its associated companies in January 2018, which resulted in about R120bn being wiped off their market value. The sel...