Listed property’s slow recovery still outpaced by equity investments
The sector has gained in line with inflation but equity investments have outpaced it
The SA listed property sector has recovered very slowly so far in 2019 and is being outdone by equity investments. According to research by Anchor Stockbrokers, the FTSE/JSE SA Listed Property Index (Sapy) had returned 4.7% in total, including capital and dividend growth up to last week Thursday. The All Property Index, which includes all real estate companies on the JSE, returned 3.5%. This was while the JSE Top 40 returned 13.3%. But general equity analyst Keith McLachlan said on Thursday that, excluding some of the JSE’s largest counters — Naspers, Richemont, Anglo American and BHP Billiton — the Top 40 Index was up only 2.5% year to date. Keillen Ndlovu, head of listed property funds at Stanlib, said Sapy had been held back by a weak economy and weak investor sentiment. The R600bn Sapy, which includes the JSE’s top 20 liquid real-estate companies by market capitalisation, suffered its worst total return in more than 20 years in 2018. The index lost 25.26% based on share-pr...
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