Real Estate Investor Magazine South Africa September 2013 | Page 54
LISTED
BY IAN ANDERSON
Reading Listed Results
Become fluent in finance jargon
F
or ma ny investor s, inter pret ing a
company’s financial accounts can be a
daunting challenge. In the listed property
sector, the task appears no less daunting, given
the number of accounting standards that create
a great deal of noise, but shed little light on the
financial well-being of the company. In reality,
the analysis of a listed property company’s
financials is actually quite simple because the
business model is easy to understand.
Listed property companies all own, buy, sell,
develop and redevelop properties (the assets).
Some companies will have investments in other
listed property companies, which would also
form part of the asset base. The assets are the
source of all revenue, either in the form of ?[?[?[???YK H ?X??\?H??\?][??^ [??\????H [?[? ?????H\? ?X?][??Y? ^H]?B?[??\?Y[? ?[??\?\?Y ??\? H??\[?Y\???H??\[?H ?[[ ??[??\?YZ[?\? ?]]?B?^ [??\?Z?H ?Y?? ?[\?Y\?[? H^ [??\?\????X]Y ?]?Z[??H\?Y[?] K???B???\[?Y\? ?][?\??[\?YX[?Y?[Y[??? ? X? H ?\??[??? ????[??X\?\?[??YZ[?\? ?]]?H^ [??\? ?[H^ \??[?X[?Y?[Y[?\??[??[Y[? ?\?H?\?Y?H ?]?\??[?Y?H???\[?H[?\? ?\?H ?[ YH
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