Stanlib Head of Listed Property, Keillen Ndlovu explains why listed property
has performed in 2014: “The sector has
held up well due to bond yields strengthening and the impressive distribution
growth achieved by the majority of listed
property companies, thanks to fairly good
fundamentals across the sector and astute
asset management skills.”
The offshore portfolios of SA-listed
property companies have also played
a key role in 2014 performance. Says
Ndlovu: “The increase in offshore earnings has partially contributed to distribution growth, given the weakening of the
[rand]. We estimated that around 20% of
the earnings generated from the listed
property sector is now from offshore.”
Within the 14% return achieved
thus far, there has been extreme outperformance and underperformance by the
various companies making up this sector.
Says Ndlovu: “Performance has differed
on a case-by-case basis. But in general,
companies that have managed to outperform the market are those which have
demonstrated good earnings momentum.
“Some out- or under