PARKS PROPERTY ADVICE


Listed property has delivered a stellar performance . . . but, now it’s time to cherry-pick


Though listed property turned in a stellar performance last year (notching up a total return of 27%, which was way ahead of market expectations and more than double the JSE all share index’s 11%) not all property counters made good money for investors, so those investors looking to outperform the market in 2015 will have to become more discerning in their stock selection.

The sector notched up a total return of 27% last year, which was way ahead of market expectations and more than double the JSE all share index’s 11%. Property stocks’ outperformance was underpinned by stronger bond yields; better-than-expected earnings growth; a flurry of merger, acquisition and new listings activity; and the entry of a new breed of institutional investor who analysts believe is increasingly viewing listed property as a standalone asset class.

However, not all property counters made good money for investors last year.

In fact, the total return gap between some of the top performers such as Rockcastle Global Real Estate Company, Resilient Property Income Fund and Romanian-focused New Europe Property Investments (Nepi) and those at the bottom of the pile such as Delta Property Fund and Redefine International is more than 40%.

Analysts believe the total return differential between individual counters could ...

Read full article - By Joan Muller, Financial Mail