The sell-off seen this year in the listed property sector was extensive and accelerated sharply after the declaration of the National State of Disaster in March 2020, followed by junk status being assigned to South Africa's credit rating by Moody's (who joined S&P and Fitch rating agencies). This article provides insight into property valuations within the COVID-19 world and how primary drivers of property valuations have changed, as well as insight into how valuer assumptions have been affected by the COVID-19 pandemic. Aimee Glisson, Director: Operations, Performance & Risk at Metope, gives her views.
Dismal results reported by JSE-listed property stocks in recent weeks underscore the extent to which Covid-related trading restrictions have hobbled these companies’ predictable dividends. The key question that property investors are asking themselves is whether it still makes sense to own shares that are overweight in shopping centres. The answer: despite heavy Covid-induced losses, it seems selected retail-focused REITs are still worth a punt. Metope Investment Analyst Kelly Ward comments.