Listed property experienced a rough ride in 2018 with average share prices losing more than 25% and investors are cautioned to carefully assess the risks as the volatility is likely to continue. The asset class delivered a negative return of 25.2% for the 12 months ending in December 2018. This affected the three-year return, with investors losing 1.1% over this period compared to gains of 11.7% for the three years to end-December 2017, says Eugene Visagie, portfolio specialist at Morningstar Investment Management. Prior to 2018, he says, the property sector beat all other local asset classes, but the impact of stock-specific declines last year combined with a low-growth environment resulted in listed property experiencing its worst calendar year return since the inception of the South African property index (Sapi) in 1993. Some of the company-specific issues include the Viceroy allegations about the Resilient group of companies, which prior to their collapse comprised more than 40%...

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