South African Real Estate Investment Trusts (SA REITs) have yet again excelled among the country's companies earning the most for their investors.
With nine SA REITs in the Top 100 Companies based on value created for shareholders over five years, the sector featured prominently overall.
"SA REITs continue to perform well for investors and deliver solid, sustainable results," reports Laurence Rapp, Chairman of the SA REIT Association.
The SA REIT Association represents South Africa's listed REIT sector and its members include all listed SA REITs. The sector comprises some 30 counters with a market capitalisation of around R360 billion. The quality of these SA REITs influence our economy and the quality of people's lives
"REITs have a key role to play in providing affordable access to property ownership as well as contributing to the savings of South Africans," notes Rapp. "The prolific presence of REITs among SA's top listed investments and the sector's positive performance track record are among the solid reasons that any serious investor should consider meaningful exposure to the listed property asset class as a must-have."
The sector's top player was again Fortress Income Fund B, which earned second place overall with a compound annual growth rate of 58.51%. Other top performing SA REITs included in the Top 100 Companies are Resilient REIT, Hyprop Investments, SA Corporate Real Estate, Dipula Income Fund B, Octodec Investments, Investec Property Fund, Redefine Properties and Oasis Crescent Property Fund.
This outstanding industry showing among SA's Top 100 companies is supported by SA REIT Association research, conducted by Grindrod Asset Management, which shows SA REITs have again delivered healthy positive performance in 2016.
For this year to the end of October, SA REITs delivered respectable total returns of 12.3%, hot on the heels of SA equities at 15.8%, and significantly outstripping cash at 6.08% and SA bonds at 2.2% (research available at www.SAREIT.com).
The Top 100 Companies awards acknowledge those listed companies that have created the most wealth and value for shareholders. The share price performance of every company listed on the JSE is calculated using a hypothetical initial investment of R10 000 in each share over five years, from September 1, 2011 to August 31, 2016. Companies are then ranked according to their share price performance, as calculated by financial services company INet BFA. The results were recently published in the Top 100 Companies survey carried out by the Sunday Times Business Times.