Metope In The News

Despite tough market conditions well before the Covid-19 outbreak in South Africa, JSE-listed real estate counters Arrowhead Properties and Exemplar Reitail posted financial results ahead of expectation this week. Arrowhead, which has a dual A and B share structure, reported distributable income growth of 4.1% to 56.77 cents for its A share. The group also narrowed the distribution per share (DPS) decline of its B share to -7.69%, which translated to 31.46 cents for the half year compared to 34.08 for the corresponding prior period. Metope Investment Analyst Kelly Ward comments on the results.

There's plenty of rich pickings to be had among the JSE's smaller property plays - provided you're a patient punter with a higher risk appetite. Metope's Kelly Ward comments.

Growing earnings uncertainty has become the new norm among real estate investment trusts (Reits), but the JSE’s only pure Western Cape-based property play, Spear Reit, still scores fairly high in terms of predictability. The small-cap company, which was co-listed by industry veteran Mike Flax less than four years ago, is one of the few property counters still delivering on its dividend growth promises. Metope Investment Analyst, Kelly Ward, comments.

Equites, the JSE’s only specialist logistics Real Estate Investment Trust (Reit), continues to deliver the goods.The warehouse and distribution centre developer is one of only a handful of SA property stocks that can still afford to pay a dividend. Most other Reits are expected to postpone dividends and hold on to their cash instead, as potential losses from Covid-19 lockdown-induced rental holidays, tenant defaults and bankruptcies start to mount. Metope Investment Analyst Kelly Ward comments.

Perennial blue-chip property stocks like Hyprop, Redefine, Vukile and EPP are trading at dividend yields of unbelievably tempting levels of between 30% and 40%. Consider that late last year, these real estate investment trusts (REITs) were trading at yields of below 14%. In fact, some lower-rated property stocks like Fourways Mall owner Accelerate can now be bought at a yield of 72%. But analysts are warning investors not to be dazzled by what may at first glance appear the buying opportunity of the century. Metope investment analyst Kelly Ward comments.

The market has once again warmed to MAS Real Estate, despite disclosure concerns and a potential conflict of interest arising from recent management changes. The company, which in November appointed Nepi Rockcastle co-founder Martin Slabbert at the helm as CEO — its third CEO in less than two years — bounced back more than 15% at one point last week following the release of a robust set of results.  Metope Investment Analyst Kelly Ward comments.

It’s no secret that shopping centre owners have had a horrible two years. Profits have been eroded on multiple fronts and led to the demise of Stuttafords, a brutal restructuring at Edcon, as well as closure of international stores including River Island, Topshop and Victoria’s Secret. All the while, utility costs and municipal rates are rising and electricity is intermittent. But it’s not all doom and gloom. Latest shopping centre performance metrics released by some JSE-listed mall owners suggest that many are using the downturn to boost flagging sales and footfall. Metope Investment Analyst Kelly Ward comments.

The end of February marks the start of the new tax year and it’s time for investors in a Tax Free Savings Account (TFSA) to either make their lump sum investment of R33 000 or a series of regular investments in order to take full advantage of the tax benefits offered by SARS for these type of savings vehicles. For those investors looking to generate an income from their investments, and who can maximise their TFSA allocations for the next 15 years, tax free property income funds can be used to provide an attractive income in the future. They are ideal for those investors who do not have a pension fund or whose pensions may not be sufficient and need to be supplemented. Liliane Barnard and Aimee Glisson at Metope Investment Managers elaborate.

Markets move in cycles. Anyone currently invested in a portfolio of local equities or listed property would know that we’re currently in a prolonged downturn, where returns over the last 3-5 years have been dismal. In times like these, the last thing you want is to be drawing down capital, locking in those losses. Whether you’re retired and require an income to live off, or are saving for a future goal, investing in a portfolio that delivers an income stream means you can ride out these storms. Metope CEO Liliane Barnard elaborates.

The JSE's battered real estate sector appears dirt cheap but property investors need to tread with caution. Analysts say there is significant value to be had for patient investors with a longer-term horizon but there is also a clear message: headwinds could still affect property returns over the next 12 to 18 months. Metope investment analyst Kelly Ward comments.