Nepi Rockcastle: recovery from a rocky road
The drop in Nepi Rockcastle’s share price has created a cheap entry point for patient investors
It seems that Eastern European property play, Nepi Rockcastle, which last week declared impressive growth of 17% in its euro-based dividend payouts for 2017, has been unfairly punished by the market because of its association with the Resilient group. A general skittishness among JSE investors following the collapse of Steinhoff’s share price has also not helped. Nepi Rockcastle’s stock has slumped around 42% in the year to date, which has wiped nearly R53bn off its market cap. That’s a sharp turnaround from two months ago, when Nepi Rockcastle was still one of the most popular rand hedge stocks on the JSE. Other companies in the Resilient stable — Resilient Reit, Fortress Reit and Greenbay Properties — have shed more than 50% in the year to date following what initially appeared to be an orchestrated short selling campaign by hedge funds. Market jitters were further fuelled by three reports that questioned the group’s cross-holdings, BEE structures and the large premium to net asse...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.