Real Estate Investor Magazine South Africa September 2014 | Page 49

Property, establishing your investment foundation
THERE IS A REASON WHY OVER 95%
OF OUR PORTFOLIOS HAVE EXPOSURE
TO LISTED PROPERTY!
Most people think that the
most lucrative returns are
generally found in the stock
market. Little do they know
that the listed property
market can pack just as
powerful of a punch.
Over the past 5 years the JSE All Share Index has returned
19.26% annually including dividends, however the JSE Property
Index has similarly returned 19.24% over the same period with
the interest pay-outs reinvested.
Currently the equity market has seen a massive bull market which
has stretched the valuations of equities to an average price to
earnings ratio of approximately 18.5 and a dividend yield of
2.82%.
The listed property sector has also performed well but at a price
to earnings ratio of 12.33 and a dividend yield of 6.14%, the
metrics do lean in favour of property investments at the moment.
This, coupled with a lower volatility of returns, means listed
property is an investment you cannot afford not to have.
Michele Santangelo
Fund Manager
Vunani Private Clients

I recently spoke at an income investing presentation and I
was amazed as