Speculation about further consolidation in 2014 for the most active sector on the JSE for corporate action, the SA REIT (Real Estate Investment Trust) sector, is rife yet again.

Listed property returns likely to beat forecasts

2014 has confirmed that the listed property sector is moving from a cycle of new listings, into one of consolidation.

Repricing of the listed property sector will make it less attractive for unlisted real estate companies and developers to bring their shopping centres, offices and warehouses to the JSE.

Listed property unit trust Sycom Property Fund said it "accepted" the JSE’s censure regarding three general issues for cash in 2010 and 2012, for which Sycom did not obtain unitholder approval, and said it did not believe it would be in the interests of unitholders to take the matter further.

Property analysts are not buying the reasons why Old Mutual Property decided to scrap the eagerly awaited listing of its R12bn Triangle Real Estate Core Fund

Hyprop Investments’ R9bn acquisition of Attfund’s retail arm, will not only have positive spin offs for Hyprop shareholders but will also gain capital injection into AltX-listed MAS.

“Bond yields have corrected but there is more to come. We are just at the bottom of the interest rate cycle”

In a few years’ time Old Mutual will regret offloading its property portfolio.

The ups and downs in property shares look quite restrained compared with the equity market. In 2008, the property unit trusts (PUTs) had a negative return of 9,7% compared with a 23,2% decline in the all share index. The recovery was also less dramatic, with a total return of 18,7% in PUTs compared with a 32,1% return from equities in 2009.