Listed property rakes in returns

Posted On Tuesday, 18 January 2005 02:00 Published by eProp Commercial Property News
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The listed property index put in a bumper performance last year, outperforming the JSE Securities Exchange all share index, bonds and cash.

Andre StadlerCape Town - The listed property index put in a bumper performance last year, outperforming the JSE Securities Exchange all share index, bonds and cash.

According to André Stadler of Catalyst Securities, listed property returned

41.3 percent in total for the year compared with the all share index's 25.4 percent.

Cash, using the Alexander Forbes money market index as a benchmark, had a total return of 8.2 percent, while the all bond index returned 15.7 percent.

Catalyst's latest monthly overview for the listed property sector shows that property unit trusts came out tops, delivering a total return of 42.6 percent, with property loan stock companies returning 39.9 percent.

For the month of December, the total return of the listed property index was 5.7 percent.

Spearhead, the second-smallest listed property fund, was triumphant in December, with a return of 21.1 percent for the month. This moved it into the top performing spot for the year, with a total return of 66.9 percent.

Catalyst's overview shows that none of the property funds returned less than 20 percent, with the worst performance being Ambit's 21.4 percent.

On expectations for this year, Stadler said the fundamentals for non-residential property were firming and solid distribution growth could be expected.

"Prudently we expect a total return of 11 percent to 13 percent for listed property."

He said listed property should again outperform cash and bonds, but not equities.

Angelique de Rauville, the managing director of Provest, Investec's listed property portfolio management subsidiary, was also bullish.

Based on interest rates remaining stable or rising slightly, she predicts listed property to show a total return of 14 percent.



Last modified on Tuesday, 13 May 2014 17:35

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