There is yield in property

Listed property on the JSE has delivered in excess of 30% in 2012 and while many are concerned that it won’t be able to repeat this performance in 2013, two quality asset managers believe the sector still has legs.

Recently Grindrod Bank told investors that the listed property sector was trading on a forward yield of 6.7% and was likely to see distributions grow by between 6% and 8% per annum over the next 3 to 5 years. Ian Anderson, Chief Investment Officer at Grindrod Asset Management said he saw “significantly more value in the listed property sector than in the South African bond market.”

Anchor Capital put together this excellent little table showing the forward yields of the listed property plays. Vividend, a firm favourite of the Finweek team, features prominently here:

 

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