Investor appetite for property stocks may finally be on the mend. Though it’s still early days, the SA listed property index (Sapy) is up nearly 4% since hitting a five-year low towards the end of December. That follows the Sapy’s drop of nearly 30% in 2018. Though investors may still be somewhat unsettled by last year’s value destruction, analysts expect the sector to lure back more income-chasers over the coming months given the value proposition on offer. The Sapy is trading at an average 9% dividend yield while at least 10 SA-based counters are trading at yields exceeding 12%. That’s attractive given that other assets such as bonds and cash offer income returns of not much more than 7%-8%. Most analysts are forecasting positive total returns (income and capital growth) for the listed property sector of between 10% and 14% this year. Capricorn Fund Managers SA analyst Howard Penny says despite a rather treacherous rising global interest rate environment, the historically high yie...

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