Lead­ing the in­dus­trial prop­erty charge

Financial Mail - Investors Monthly - - Analysis -

ndus­trial prop­erty is cer­tainly not re­garded as a sexy sec­tor, yet Equites Prop­erty Fund, the JSE’s only spe­cial­ist in­dus­trial real es­tate play, has been one of the best-per­form­ing prop­erty stocks in the year to date.

The counter has achieved a to­tal re­turn of 27% for the 10 months to end-Oc­to­ber, which is im­pres­sive com­pared with the av­er­age 9% de­liv­ered by the listed prop­erty sec­tor as a whole over the same time (Cat­a­lyst Fund Man­agers’ fig­ures).

Lack of size and liq­uid­ity

Imeant Equites may not have ap­peared on ev­ery­one’s radar when the counter first listed on the JSE in June 2014. Back then, the com­pany had a rel­a­tively small port­fo­lio com­pris­ing only 17 West­ern Cape-based prop­er­ties val­ued at R1.2bn. How­ever, man­age­ment has since grown as­sets in leaps and bounds. At the end of Au­gust, the port­fo­lio value was R5.9bn, which com­fort­ably ex­ceeded man­age­ment’s prelist­ing tar­get of grow­ing the port­fo­lio to R4bn in five years.

Equites has also out­per­formed

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