Given the sizeable discounts to NAV that many property stocks are offering, is it still worth paying a premium for market darling Equites Property Fund? It’s an apposite question to ask, considering the 30%-plus dip in share prices of many property stocks over the past 12 months. Almost no-one has been spared, including Hyprop (down 34%), Accelerate (down 38%), Fortress B (down 31%) and Rebosis (down 85%). But Equites, as the JSE’s only property company to give you pure exposure to logistics, has still been a regular on fund managers’ stock pick lists. And despite the fact that its share price has been somewhat volatile in the past year (down nearly 2%), it is still up 50% over a three-year period. As a result, Equites is now trading 20% above its NAV. Equites’ forward dividend yield is 7%, one of the lowest among the sector’s 50-odd stocks. Analysts admit that Equites may look expensive. But the consensus is that this premium is justified, given that it continues to deliver an abov...

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