19 June 2019 - 20:38It is becoming harder to make the case to invest in SA’s listed property stocks while economic growth is weak and funds are raising little capital at home, a panel of landlords and fund managers said on Wednesday at a property conference.
However, fund managers have said that since stocks were trading at discounts to NAV, it was a good time to buy “cheap” property counters. Zondo said property stocks with South African exposure needed the economy to grow at more than 2% to start getting momentum into their share prices and dividend growth, otherwise they would remain fairly bland investments.
“I don’t think anyone in the sector has faced a tougher economic environment than the one we are currently in. These are the toughest circumstances I have worked in. We have to manage through it as an industry,” he said. The SA Reit Association had been working on measures to get general equity investors to return to listed property, De Klerk said.