Metope In The News

Nepi Rockcastle shareholders hoping that the Eastern European property arm will pay a cash dividend for the June reporting period will no doubt be sorely disappointed. But shareholders won’t be left empty-handed. Management is rewarding investors with a capitalisation issue of 4.2920 ordinary shares for every 100 held. Metope Investment Analyst Kelly Ward comments

Unlike most of its listed property peers, which are reporting a pandemic-induced rise in vacancies and falling rentals, Stor-Age - the JSE’s only self-storage company - is still seeing solid demand for its products. In fact, inquiries from people looking for a place to stash their goods have increased by about 10% year-on-year since May 1, when less stringent lockdown restrictions took effect. Metope's Kelly Ward comments. 

While most of its fellow JSE-listed property groups withholding or deferring dividends due to Covid-19 uncertainty, Stor-Age Property Reit (Real Estate Investment Trust) has decided to pay out final dividends for the full-year to the end of March 2020. Metope investment analyst Kelly Ward comments.

Delta Property Fund, one of the JSE’s most empowered real estate investment trusts (Reit), reported one of its worst performances for the full year to 29 February, with distributable earnings for the year declining 38.1% to 45.69 cents per share, from 73.84 cents per share achieved in the prior year. However, the office-focused fund said it had nevertheless managed to renew 211 764m² of expiring leases and concluded 17 344m² new leases during the year. Metope Investment Analyst Kelly Ward comments. 

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.