Real Estate Investor Magazine South Africa November 2015 | Page 47
In an environment where
question marks loom about
the sustainability of corporate
profit growth, there are strong
merits for allocating capital
towards more defensive assets
like listed real estate.
• US multinationals are importing disinflation from
the slowdown in global trade. These disinflationary
pressures are providing a cap on rising US Treasury
yields, which was a previous concern for our thesis
on US-REITs.
www.reimag.co.za
Positive signals for US-REITS:
*Includes: P/E, P/CF, P/B and Dividend Yield Relative
to S&P500. Source: Bank Credit Analyst
Conclusion
The US REIT market has been is in a particularly good
space for a while now, but entry levels have earlier not
been attractive enough to support a buying spree.
Fortunately, the negative sentiment from nervous
investors has spilled over to the share prices of the
more defensive REIT sector. This combination of
attractive entry points, defensive earnings and strong
fundamentals places US-REITs in a particular sweet
spot compared to other investment alternatives.
RESOURCES
Reitway Global
NOVEMBER 2015 SA Real Estate Investor
45