Why township malls outperform their suburban counterparts
Malls that cater for lower-income shoppers are delivering better returns than their suburban counterparts
Real estate investors may well be tempted to stash their cash elsewhere in light of the disappointing income and share price performances delivered by JSE-listed property stocks this year. Few SA-based real estate investment trusts (Reits) have bucked the general trend. Fairvest Property Holdings is a notable exception. The company, which owns a R3bn portfolio of more than 40 retail centres that cater mostly for lower-income shoppers in townships and rural areas, last week reported dividend growth just short of 10% for the year to the end of June. That’s impressive in a recessionary climate, and nearly double the average 5.5% rise in dividend payouts expected from the sector as a whole this year. Moreover, Fairvest continues to shine on the capital growth front, notching up a share price gain of about 20% in the year to date versus the SA listed property index’s drop of 23% over the same time. "Fairvest’s distribution growth of 9.9% was perhaps the silver lining in what has been a p...