Increasing property sector payouts

Well established property counters have revealed strong yearly results over recent weeks.

A 12.6% weighted average distribution growth was recorded for the year until June in comparison with the year to last June, based upon calculations by Meago Asset Managers — far ahead of the average 8% growth forecasted by most analysts.

Real estate investment trusts (REITs) have been advantaged from owning rand hedge investments in offshore property companies and from careful management of their assets such as malls.

The Resilient Property Income Fund, JSE’s fifth largest listed REIT, recorded a rise in its distribution payout to investors of 20.94%.

Residential property trending amongst investment trusts

Freedom Property Fund, the fourth property company listing on the Johannesburg Stock Exchange (JSE) this year, last week announced it had launched two major residential property developments in an attempt to boost the group’s portfolio.

Residential property exposure on the JSE was mostly represented by two sister companies, Octodec Investments and Premium Properties — However, this is set to shift as interest in the residential sector is accelerating amongst South Africa’s listed Real Estate Investment Trusts (REITs).

Retail assets such as shopping centres have been proving popular, however property funds are finding opportunities within housing.