The JSE’s real estate sector has had a tumultuous start to the new year — the SA-listed property index slumped more than 16% in the first six weeks of 2018, which translates to a staggering loss in market cap of more than R150bn. Though Resilient Reit and its sister companies Fortress Reit, Nepi Rockcastle and Greenbay Properties account for most of the value destruction, other rand-hedge counters have also been hit by what Meago Asset Managers director Anas Madhi refers to as contagion from the short selling that was targeted at the Resilient stable. The stronger rand and higher interest-rate outlook in the UK and the US have also placed pressure on rand-hedge counters. Blue-chip offshore stocks such as MAS Real Estate, Intu Properties and Hammerson, for instance, have shed between 17% and 24% since the beginning of the year. "Several rand-hedge stocks that previously traded at significant premiums to NAV have rebased to highly attractive levels," Madhi says. He adds that the drop ...

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