A number of SA-focused property stocks have fallen sharply in recent weeks while investor appetite for the JSE’s rand hedge offerings appears to be stronger than ever. Despite concerns that offshore counters are starting to look expensive, the likes of Greenbay Properties, Sirius Real Estate, MAS Real Estate and Nepi Rockcastle continue to test new highs. The trend has no doubt been supported by the recent spate of less-than-impressive results reported by SA real estate investment trusts (Reits). The general theme is one of negative rental reversions and rising vacancies. That’s starting to squeeze dividend growth. A number of Reits have already reported flat or even negative dividend growth for the June and August/September results periods including the likes of Octodec Investments, Delta Property Fund, Emira Property Fund and Tower Property Fund. That’s in stark contrast to the average 11% dividend growth reported by the sector as a whole for 2016 (Stanlib figures). The share pric...

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