Premium tops property chart
Nick Wilson
--------------------------------------------------------------------------------
E-Mail article Print-Friendly
LISTED property loan stock company Premium Properties was the top performing listed property stock in terms of total return for the six months to June this year, according to Catalyst SecuritiesÆ July report on the sector.
Catalyst Securities MD Andre Stadler said PremiumÆs total return, which included income yield and unit price increases, was 35%.
He said that PremiumÆs growth in distributions to unitholders had been high, and that this had resulted in the company being rerated by the market.
Redefine was the second best in terms of performance, recording a total return of 29,27%. Hyprop was third with a total return of 25,01%.
Stadler said the top three companies all had ôdouble-digitö growth in income distributions and that this was the primary driver of their total return.
ôThe funds have delivered strong distribution growth to unit holders and have been rerated by the market,ö he said.
Stadler said listed property loan stock company Vukile Property Fund recorded the lowest total return of 5,18% and listed property unit trust Sycom was second lowest with 9,84%.
He said one possible reason for VukileÆs low total return was the fact there were still some concerns from the market around the ôquality of the portfolioö.
Stadler said Vukile was also a newly listed fund and had not yet developed a track record, so the market was waiting to see what it delivered. Vukile listed on the JSE in June last year.
As far as SycomÆs performance was concerned, he said the property unit trust had been involved in a development programme and that the benefits of this had not yet materialised in income growth.
ôBut going forward we expect stronger growth in income distributions (from Sycom),ö said Stadler. Sycom has completed the redevelopment of two of its existing Sandton buildings for Discovery Health.
The fundÆs office building on the Foreshore in Cape Town has also been completed.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
