Vot­ing with their wal­lets

Finweek English Edition - - INVESTMENT - MARC ASH­TON

WHEN IT comes to the South African prop­erty sec­tor, I’ve been a big fan of Vividend. How­ever, the In­vestec Prop­erty Fund keeps mak­ing the right noises and if you are look­ing at the niche port­fo­lios then this is one to keep in the back of your mind.

The one thing that has jumped out at me in the last week or so has been how bullish the direc­tors of the fund have been post the re­cent rights is­sue. Direc­tors have spent R60m ac­quir­ing new units in the fund. Va­can­cies in the port­fo­lio are low (un­der 3.5%) and ar­rears were only 0.2% (down from 0.7%) in March 2012.

At first glance the yield on the fund (5.4%) isn’t great rel­a­tive to its sec­tor peers, but it should be seen in the light of a growth as­set with a rel­a­tively young prop­erty port­fo­lio. Direc­tors have been buy­ers be­tween R13.82 and R14.70/share – this should give you some ideas around the lev­els at which to in­vest.

This is one worth stock­ing up on.

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