Premium tops property chart

Posted On Wednesday, 27 July 2005 02:00 Published by eProp Commercial Property News
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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 Securities’ July report on the sector.

Andre StadlerCatalyst Securities MD Andre Stadler said Premium’s total return, which included income yield and unit price increases, was 35%.

He said that Premium’s 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 "double-digit" growth in income distributions and that this was the primary driver of their total return.

"The funds have delivered strong distribution growth to unit holders and have been rerated by the market," 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 Vukile’s low total return was the fact there were still some concerns from the market around the "quality of the portfolio".

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 Sycom’s 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.

"But going forward we expect stronger growth in income distributions (from Sycom)," said Stadler. Sycom has completed the redevelopment of two of its existing Sandton buildings for Discovery Health.

The fund’s office building on the Foreshore in Cape Town has also been completed.

Last modified on Tuesday, 06 May 2014 16:14

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