Voting with their wallets
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.