The yield to maturity (YTM) on the Long Term Government Bond Index weakened during the month to end the month at 7.96% (7.79% - 31st March 2015). The SA listed property historic yield ended the month at 6.0% excludes Attacq NEPI, Rockcastle and Pivotal (6.0% - 31st March 2015). The SA listed property sector historic rolled yield was trading at a premium spread of 1.95% to the Long term Government Bond yield to maturity at 30 April 2015 (1.79% - 31st March 2015.)  

SA Equities recorded the highest total return (4.70%) of the four traditional asset classes for April 2015. SA Cash (0.51%), SA Property (0.04%) and SA Bonds (-0.49%) were the next best performing asset classes. For the last 12 months SA Listed Property has recorded the highest total return (38.26%), followed by SA Equities (17.82%), SA Bonds (11.89%) and SA Cash (6.67%).  

The market saw the conclusion of Growthpoint’s acquisition of Acucap during the month. Pivotal property fund was included in the SAPY on the 20th April in place of Acucap. From a local results perspective Rebosis reported an 8.2% growth in distribution per unit for its interim period ended 28th February 2015.   

Rebosis and Ascension issued its circulars to their respective unitholders for Rebosis proposed takeover of Ascension Properties.  Redefine International reported its interim results for the period ended 28 February 2015, distribution growth per unit was 6.7% compared to the previous comparable period.   

Vukile raised R1.1 billion and Leaf Capital placed redefine shares valued at R840 million via accelerated book builds.   Both transactions were well supported and were oversubscribed.   

Real Estate fundamentals in South Africa remain challenging, but strong capital markets and lower yields for longer will be supportive of listed real estate performance. In the short term, listed real estate returns are likely to take their direction from capital markets rather than real estate fundamentals. Over the long term, real estate fundamentals will drive performance. .