Extra space for growth
Property investors turning to alternative real estate sectors
Demand for specialist offerings indicative of growing appetite for stocks that invest in nontraditional real estate sectors
The only SA-focused property stocks — besides perennial outperformers Fortress Income Fund and Resilient Reit — that count among the sector’s top 10 in terms of share price growth over 12 months are self-storage operator Stor-Age Property Reit and logistics play Equites Property Fund. The two counters are up 18% and 39% in the year to September 29. That compares with a 6% rise in the SA listed property index as a whole over the same period. Analysts say demand for specialist offerings such as Stor-Age and Equites is indicative of growing appetite for stocks that invest in nontraditional real estate sectors.Self-storage is a particularly interesting sector given that it is still in its infancy in SA. Wynand Smit, research analyst at Anchor Stockbrokers, says there is no doubt that self-storage is increasingly on the radars of SA investors as the dynamics are attractive, especially relative to more established property sectors. Some of the demand drivers for self-storage, such as life...