Sirius Real Estate: A model that works differently
The company is starting to look expensive, but there still seems to be potential for rental and capital growth
Rand hedge property counter Sirius Real Estate has had an impressive run since its December 2014 listing on the JSE. Investors who bought shares in the then little-known German business-park owner have since doubled their capital and have also pocketed a decent euro-based dividend payout of about 5%/year. For those who haven’t yet claimed their stake in Sirius, the question is whether the share price has run out of steam. The counter seems expensive at first glance, particularly as it notched up a hefty 45% gain last year. That made Sirius one of the JSE’s top-performing real estate stocks for 2017. The share price was down about 20% in the first two months of 2018 – no doubt on the back of a stronger rand – but Sirius has since regained most of those losses. That’s in contrast to a number of other rand hedge property counters that have extended their early 2018 declines in recent months. For instance, MAS Real Estate (focused on the UK, Germany and Eastern Europe) is down 25% in th...
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