Outlook for the SA property sector
Resilient: behind the investor panic
The question arises why the market has assumed the Resilient group is next in Viceroy’s firing line
Last week’s renewed sell-off of the Resilient group of companies has created fresh panic among investors, and understandably so, given the dominance of long-time market darlings Resilient Reit and stablemate Nepi Rockcastle, Fortress Income Fund and Greenbay Properties in the JSE’s real estate index.SA’s top-rated property analyst, Naeem Tilly, a former Avoir Capital Markets director who joined Catalyst Fund Managers earlier this year, says the Resilient group is a natural target for market rumour because of its crossholdings and outperformance of the broader market. "Nonetheless, those who follow the company closely understand its business model," Tilly says. The group has in recent years consistently outperformed its peers, in terms of both income and capital growth. Last year, all five counters were among the sector’s top performers, notching up total returns of 66% (Greenbay), 38% (Resilient Reit), 37% (Fortress B) and 23% (Nepi Rockcastle) respectively — comfortably ahead of th...