PROPERTY
JSE property companies in foreign land grab
JSE property companies have been aggressive in striking overseas deals in recent years. But, unlike many of the blockbuster deals elsewhere on the JSE, these haven’t (yet) backfired for shareholders. Catalyst Fund Managers analyst Naeem Tilly says the property sector’s impressive total return of 17% last year was, in fact, driven largely by companies with big offshore exposure. Eight of the top 10 property performers last year were either 100% rand-hedge counters or SA-based firms with large offshore exposure. They include Sirius Real Estate, MAS Real Estate and stablemates Greenbay Properties, Resilient Reit, Fortress Income Fund and Nepi Rockcastle. "The consistent theme among most of these counters is the high growth rates being achieved through [deploying capital] offshore," says Tilly. Today the JSE’s property sector is made up of about 50 individual stocks with a combined market value of R868bn at the end of 2017. But the offshore exposure of the SA listed property index makes...
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