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10 SA REITs among South Africa’s top listed companies

19 Nov 2019

South African REITs (real estate investment trusts) have once again excelled among the country’s top companies earning the most wealth and value for shareholders.

“The prolific presence of REITs among SA’s top performing listed investments is one of several reasons that any serious investor should regard meaningful exposure to listed real estate as a must-have,” says de Klerk.

SA REITs made up a significant 10% of the Top 100 Companies listed on the JSE to deliver the highest compound annual growth rate (CAGR) over five years.

Significantly, nine of the top-performing SA REITs were among only 75 of the publically quoted companies on the JSE able to deliver positive CAGR for their investors over the five years.

“SA REITs have performed relatively well for investors in a very challenging business environment. This solid performance shows that listed real estate is a defensive investment through cycles,” reports Estienne de Klerk, Chairman of the SA REIT Association.

The SA REIT Association represents SA’s listed REIT sector and its members comprise all 30-plus listed SA REITs with a market capitalisation of some R300 billion. Through their property assets and responsible investment in SA’s built environment, these active businesses influence our economy and the quality of people's lives.

Leading the listed property sector, and fourth overall in the Top 100 Companies, Equites Property Fund delivered a CAGR of 22.6%. Other top performing SA REITs to be included in the Top 100 Companies are Fortress A (13.5%) and B (2.6%), Vukile Property Fund (11.1%), Investec Property Fund (7.3%), Emira Property Fund (6.2%), Growhpoint Properties, (6.0%) Redefine Properties (4.4%), Resilient REIT (4.4%), Hyprop Investments (0.6%) and Hospitality Property Fund (-1.5%).

“The prolific presence of REITs among SA’s top performing listed investments is one of several reasons that any serious investor should regard meaningful exposure to listed real estate as a must-have,” says de Klerk. “REITs create affordable access to property investment and contribute to the savings – including the tax-free savings - of South Africans.”

The Top 100 Companies awards acknowledge those listed companies that have created the most wealth and value for shareholders. The methodology considers the share price performance of companies listed on the JSE with a minimum market capitalisation of R5 billion at 31 August 2019 and at least a five-year track record of trading from 1 September 2014. Specific subjective criteria, such as perceived compliance with good governance and ethical conduct, were also applied by the executive management of Tisa Blackstar Group. Performance calculated using a hypothetical initial investment of R10 000 in each share over five years, based on purchasing at the closing price on 31 August 2014, and holding from 1 September 2014 31 August 2019.

Companies are ranked according to their compound annual growth rate (CGAR) over the five years based on data sourced through IRESS and with calculations verified by Deloitte. The results were published in the Top 100 Companies survey carried out by the Sunday Times Business Times.

The SA REIT Association is hosting its fourth biennial SA REIT Conference on 16 July 2020 at Summer Place, Johannesburg, sponsored by Nedbank CIB, visit www.sareit.com.

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