Metope In The News

Glacier, Funds on Friday – Listed property: stress-tested and bearing up in a very tough market

After a strong start to 2019 when listed property soared 9.2% in January, hopes for a solid recovery for the sector have since been dampened. Recent company results have been disappointing, with growth in dividends slowing almost across the board, and indeed going backwards in some cases. However, on closer examination of the results to May 2019, it appears that the underlying physical property is bearing up in what is a very tough market. Negative company earnings and disappointing growth numbers are largely due to once-off and non-recurring issues, or capital items which are not reflective of the underlying property performance. Metope CEO Liliane Barnard gives her views.

View Article

Financial Mail The Property Handbook 2019: Stor-Age Property REIT

Stor-Age Property REIT is a fully integrated and internally managed Real Estate Investment Trust (REIT), specialising in self-storage properties. The company listed on the JSE in November 2015, becoming the first and - to-date - only self-storage REIT listed on any emerging market exchange. In March 2019 Stor-Age was incorporated in a number of JSE indices, including the All Share, All Property and SA REIT indices. Metope investment analyst Kelly Ward comments further.

View Article

Financial Mail The Property Handbook 2019: Echo Polska Properties

Echo Polska Properties (EPP) is a pure Polish property play, with listings on the Luxembourg Stock Exchange and the JSE. The company was listed in SA in September 2016 in the Real Estate Holdings & Development Sector and offers investors exposure to the growth in the Polish economy through a portfolio of mostly retail assets. While EPP follows the Real Estate Investment Trust (REIT) formula and structure, it is not a REIT, and therefore subject to corporate tax. Metope investment analyst Kelly Ward elaborates further.

View Article

Financial Mail: Stor-Age stands out thanks to the hoarders

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.

View Article

Financial Mail: Why listed property is not as safe as houses

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.  

View Article

Financial Mail: Redefine dividends remain under pressure

Property investors still betting on dividend payouts rising by the usual 8%-10% this year will be sorely disappointed. A case in point is Redefine Properties, the JSE’s second-largest SA-based real estate investment trust (Reit), which earlier this month declared dividend growth of a rather uninspiring 4% for the six months to February 28. Management expects similar growth for the full year to August. While Redefine’s dividend growth performance is on the lower end of management’s earlier guidance of 4%-5%, it wasn’t unexpected given the depressed state of the SA economy, a battered consumer and little, if any, new demand for office, retail and industrial space. Metope investment analyst Kelly Ward comments.  

View Article

Financial Mail: Resilient REIT -tentatively resilient, for now

While the market awaits the conclusion of the Financial Sector Conduct Authority’s (FSCA) prolonged probe into allegations of share price manipulation and insider-related trading against Resilient Reit and its associate companies, it appears that investor sentiment is on the mend. While the stock is still nowhere near its early 2018 highs of about R150 — and is highly unlikely to get back to those levels any time soon — analysts say increased appetite for Resilient shares has been driven by encouraging results, including a solid performance of the company’s underlying property portfolio. Metope CEO Liliane Barnard comments.

View Article

Glacier – Funds on Friday: Why listed property remains attractive in volatile markets

Last year, 2018, was an inordinately difficult year for listed property. The sector is taking some time to regain investors' confidence, with analysts pointing out that a revival in business and consumer confidence is needed in SA, as well as positive GDP growth for property fundamentals to recover in 2019 and beyond. In addition, a ruling by the FSCA on its investigation into the Resilient group of companies will help ease investors' concerns. However, industry players have noted that the correction in the sector has been overdone. A number of stocks are very attractively priced, with yields currently the highest in 10 years - making it a good time to buy selected property counters for the long term. Metope CEO Liliane Barnard comments.

View Article

Metope Investment Managers: 2019 Outlook

Despite all of the pressure seen in 2018, listed property has proved itself once again by delivering a stable income return to investors. While the share prices and capital values of property stocks were hard hit, the companies continue to deliver on their income distributions. It is the stable, sustainable and growing income stream that is the hallmark of listed property and what investors should look for in an investment into the sector. Metope CEO Liliane Barnard outlines her views.  

View Article