It took a while for real estate investors to warm to Stor-Age Property Reit when it made its debut on the JSE in November 2015. Back then, few regarded self-storage as a serious asset class. How times have changed. These days Stor-Age regularly tops fund managers’ stock-pick lists: it is one of less than a handful of property stocks still delivering inflation-beating dividend growth. Metope investment analyst Kelly Ward comments.
An eye-popping 57% gap between SA’s best-and worst-performing property unit trust funds underscores just how critical stock-picking has become at this part of the listed property cycle. Analysts point out that once GDP growth picks up, property fundamentals will also improve but investors need to adjust their total return expectations downwards.