After starting the year on a high, property stocks have been retreating ever since as headwinds hit the sector. Property stocks shed 8% in the first two weeks of 2018, after delivering total growth — income yield and capital return — of 17.15% in 2017. The biggest headwind was the rumour that Viceroy Research was set to release a negative research report on a company in the sector, thought to be Resilient. One view is that bond yields are set to spike, which would affect local stocks negatively as their debt structures are linked to global bonds. A stronger currency also affects local property stocks with foreign exposure, which is about 40% of total assets. The general view is that property stocks are pricey, trading at an average price:earnings ratio of 20. The all share is at 21. The market is still reasonably expensive in absolute terms, says Old Mutual Investment Managers group Titan boutique head David Cook. "That is despite the more positive environment after Cyril Ramaphosa’...
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