Metope In The News

Financial Mail: Vukile’s Spanish foray pays off

This year has turned out to be a horrible one for many property investors. Not only have real estate punters suffered losses on the capital growth front  but there has also been bad news in the form of lower-than-expected dividend growth. However, it’s not doom and gloom for all SA-based property funds. There have been a few notable exceptions, such as logistics company Equites Property Fund, Cape-focused Spear Reit, Stor-Age and blue-chip mall owner Hyprop Investments, which have all delivered dividend growth of between 7% and 12% this year, and Vukile Property Fund is the latest addition to this category. Metope investment analyst Kelly Ward comments.

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Investors Monthly November 2018 – Spear Reit: Western Cape focus has been a help in tough times

Finding a property stock that is still able to deliver a dividend growth north of 10% is near impossible. Most real estate counters have seen distribution growth slow to around 5% - 6% as a depressed economy and dwindling consumer spending eat into earnings. In fact, shareholders of quite a few property stocks will have to be satisfied with zero or negative growth in dividend payouts this year. However, Spear Reit, the Cape focused property play listed on the JSE two years ago, is an exception. Metope investment analyst Kelly Ward comments.

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Business Day: Liberty Two Degrees bucks weak property trends

Liberty Two Degrees (L2D), part-owner of Sandton City, Melrose Arch and Eastgate, looks set to round off a good 2018 with a strong festive season, as careful management of its prized assets has led to very low vacancies across its portfolio. Metope investment analyst Kelly Ward comments.  

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Financial Mail: Liberty Two Degrees – new look, fresh potential

Despite co-owning what is widely regarded as two of Gauteng’s most prized retail assets - Sandton City and Eastgate Shopping Centre - Liberty Two Degrees (L2D) has had a disappointing run since listing nearly two years ago. The share price has been on a steady decline since the Liberty Group brought a portion of its property assets to the JSE via L2D in early December 2016. However, loyal investors are likely to be rewarded for their patience over the next few years following the successful completion of a major restructuring exercise, through which the company began trading in its new guise as a corporate real estate investment trust (Reit) last week. Metope investment Analyst Kelly Ward comments.  

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Business Day: Sandton City fully let for the first time in 45 years

Showing there is still life yet in bricks-and-mortar retail, Sandton City, one of SA’s premier shopping malls is now fully let for the first time, having spent the past three years signing up more luxury brands than any other centre in SA. The 45-year-old super regional centre, which has 147,940m² of retail and leisure space, has zero vacancies, while other superregional centres are averaging 5.8%, according to the SA Property Owners’ Association. Metope investment analyst Kelly Ward comments.

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Business Day Property Focus: Which stocks should be on your radar?

The slowdown in dividend growth reported by most South African-focused real estate stocks in recent weeks coupled to SA's economic contraction and weaker rand will no doubt prompt investors to re-look their offshore allocations. A key question for investors is which individual counters among the JSE's bevy of close to 20 pure rand hedge property stocks now offer the best buying opportunities? Metope investment analyst Kelly Ward comments.

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Financial Mail: EPP’s turnaround gains traction

Polish retail property company EPP (formerly Echo Polska Properties) got off to a rocky start when it made its debut on the JSE two years ago as back then, SA investors were clearly not yet buying into the Polish growth story. But there appears to have been a marked turnaround in investor sentiment since early this year. Though the counter is still trading slightly below its listing price of R23.50, it has notched up share-price growth of a hefty 45% from February 5, when it hit a two-year low of R14.40. Metope investment analyst Kelly Ward comments.

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Financial Mail: Why township malls outperform their suburban counterparts

Real estate investors may well be tempted to stash their cash elsewhere in light of the disappointing income and share price performances delivered by JSE-listed property stocks this year. Few SA-based real estate investment trusts (Reits) have bucked the general trend. Fairvest Property Holdings is a notable exception. The company, which owns a R3bn portfolio of more than 40 retail centres that cater mostly for lower-income shoppers in townships and rural areas, last week reported dividend growth just short of 10% for the year to the end of June. Metope investment analyst Kelly Ward comments.

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Investors Monthly August 2018: Property shares – ripe for picking

The dismal performance of the listed property sector year-to-date has no doubt prompted property punters to reassess their investment strategies.  However, industry players believe the correction has been overdone: property stocks are now trading at record high yields, with as many as 20 out of the sector's 50-odd counters offering income chasers yields of between 10% and 18%. That offers value relative to long-term SA government bond yields, which are sitting at around 8.8% (mid-August). Metope investment analyst Kelly Ward comments.

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Financial Mail: Dividend outlook dims

Shareholders of embattled property stocks Resilient Reit and Fortress Reit (B shares), which have both recorded share price losses of 62% in the year to date, will have to be satisfied with far more subdued dividend payouts than the double-digit growth they have become accustomed to in recent years. However, while the property stocks are only expected to return to inflation-beating dividend growth in 2020, both are starting to reappear on buy lists. Metope investment analyst Kelly Ward comments.    

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