Real Estate Investor Magazine South Africa November 2013 | Page 18
COVER STORY
investor platforms such as etfSA.co.za, or
through approved financial advisors.
Direct investments
Investors who prefer to invest directly in shares
need to be well-versed with the markets and
will need to do their homework in terms of the
companies’ and shares’ values, objectives and
track records, by studying the annual reports
and company presentations.
Investors should consider the initial yield they
will be receiving relative to the medium-term
based on annualised results for the three years.
The awards focus on property fundamentals
and give a fair evaluation of the quality of stock,
asset selection and management performance
and reflects the underlying value of a property
portfolio.
This year, Resilient Property Income Fund
claimed the overall IPD Direct Property
Investment Award, having achieved a 19.3%
total return across its entire property portfolio,
compared with an IPD overall benchmark
return of 14.7%.
“An unwavering determination to
achieve the goals that define your
long-term strategy is undoubtedly
a significant key to success”
income or distribution growth prospects of
the company. Also consider the quality of the
property portfolio, including the geographic
spread and weightings to the various property
types – office, industrial, retail, hospitality,
residential and hospitals. Investors should also
look closely at management’s track record – how
long have they been managing property and
how much time have they spent in the listed
property sector.
Give preference to listed property funds or
companies that:
• offer quality long-term earnings prospects;
• maintain defensive portfolios;
• have a portfolio of assets with the potential
to generate above average growth in their
rental streams;
• employ proactive management in terms
of acquisitions, disposals, extensions,
refurbishments and developments;
• have good tenant, lease and debt profiles;
• are trading at reasonable values relative to
their income growth and quality prospects.
Picking the winners
For investors who want to back the winners
in the listed property sector, a useful resource
is the annual Investment Property Databank
(IPD) Direct Property Investment Awards,
which highlights superior fund performance,
16
November 2013 SA Real Estate Investor
For the fourth time, Resilient also received
the award for retail portfolio performance, as
its portfolio of shopping centres delivered a
19.9% total return substantially outperforming
the IPD retail benchmark of 14.6%.
Vukile Income Fund, last year’s winner for
industrial property portfolio performance,
again achieved top returns in this sector with
a 19.5% total return compared to the IPD
benchmark return of 14.7%.
and provide tax certainty and tax advantages for
the listed sector.
Nevertheless, for property loan stock company
shareholders, distributions will change from
‘interest’ to ‘rental income’ under the new REIT
structure. As such, th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