The sector featured prominently overall, with 14 listed property investments performing in the top 100 over five years - based on share-price growth and investor returns.
The sector’s top player in this category was Resilient Property Income Fund again this year. It earned 38th place with compound annual growth of 28.21%.
“These results show that, as an asset class, South African listed property companies have performed well. It also displays the good defensive qualities of an investment in the sector, especially as this five-year performance, from 1 October 2008, represents results achieved since the global economic crisis,” said Norbert Sasse, chair of the SA REIT Association and CEO of Growthpoint Properties [JSE:GRT].
The listed property sector is the most active on the JSE. It’s market capitalisation has increased considerably over the period from around R25bn to over R256bn, with two new listings in October 2013 alone attracting some R11.6bn of capital to the sector.
According to Catalyst Fund Managers, over the past 12 months to the end of October 2013 the SA listed property index delivered total returns of 18.47% outperforming compared with cash at 5.18%, SA bonds at 4.14% and second only to equities at 26.23%.
“The sector’s strong showing among South Africa’s top listed investments is reason for any serious investor to regard meaningful exposure to listed property, as an asset class, as essential,” noted Sasse.
And, with the implementation of the new SA REIT tax dispensation earlier this year, the sector also now also benefits from access to this internationally-recognised structure.
South Africa is on track to become the 8th largest REIT market globally. And, as a more tax efficient structure, the SA REIT is also enticing unlisted property companies to bring their portfolios to the market.