Exposure to retail sector benefits Provest

Posted On Thursday, 06 November 2003 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

 

LISTED property asset management company Provest, which is part of Investec Bank, said yesterday that exposure to the retail sector had a positive effect on the earnings growth of property unit trusts.

 

Property-Housing-ResidentialThis trend had emerged from analysis of data covering the past four years.

Provest also said that although there was less of a correlation between the earnings of property loan stock companies and their exposure to the retail sector, the top performers were also those with the highest exposure to retail properties.

It reported that the analysis showed that the retail property element outperformed both industrial and office property components of unit trusts.

Provest said the property unit trust with consistently high exposure to the retail sector over the past four years was Sycom.

The fund also showed the highest average growth in distributions with an average 3,2% a year.

It reported that property unit trust Capital had the lowest retail exposure, at present 7%, and showed a negative 4,9% growth rate over the past four years.

The top four property loan stocks measured by year-on-year earnings growth were those with the highest exposure to retail properties, namely Atlas, Hyprop, Premium and Spearhead.

Mariette Warner, head of securitisation and fund management at Standard Bank Properties and manager of the Standard Bank Property Income Fund, said another reason for the direct correlation between the earnings growth of property unit trusts and their exposure to retail was that the retail holdings of property loan stock portfolios were not the same quality as those of property unit trusts.

"The big regional shopping centres seldom change ownership. Because of the longer history of the property unit trusts they developed their holdings as opposed to trying to buy them," Warner said.

She said an exception to this rule was property loan stock company Growthpoint, which had a "merger/ acquisition" history. "They merged and acquired regionals built some time ago and subsequently expanded and then refurbished."

She said other property loan stocks driven by good retail were Hyprop, Atlas and Spearhead.

Last modified on Friday, 09 May 2014 14:33

Most Popular

Residential property market gathering momentum, says Eazi Real Estate

Nov 18, 2020
Parklands_3_bed_sale_R1.999m_Eazi_Real_Estate
In this last quarter concluding in December 2020, the residential property market…

Lockdown impacts buying trends of generations of home buyers

Nov 15, 2020
Andrew_Golding_Golding_PropertyGroup
The Covid-19 pandemic and lockdown has been a catalyst for highlighting the different…

Second-hand shopping is being revolutionised and expanding the circular economy

Nov 18, 2020
EPP CEO_Tomasz Trzoslo
Conscious consumers are championing the resale of goods to reduce waste and extend the…

Pam Golding Properties awarded Best Real Estate Agency in South Africa in International Property Awards

Nov 18, 2020
IPA Awards Pam Golding Properties 2020 - 2021
Competing against real estate companies from around the country, this is the 14th year…

SA commercial real estate delivers in excess of 12% yield on equity

Nov 18, 2020
Steven_Brown (1)
A silver lining amongst the many dark clouds dominating South Africa’s current economy…

Please publish modules in offcanvas position.