For the last 12 months SA Listed Property, as an asset class, has recorded the highest total return (43.65%), followed by SA Bonds (16.94%), SA Equities (16.13%) and Cash (5.37%). Capital market strength continues to be a significant driver of the strong returns.
As at the 30th April 2013 the historic rolled income yield of SA listed property was 5.86%. Assuming growth in income of 7.50% over the next 12 months, the forward rolled yield is 6.30%. The global listed real estate sector is currently trading at an estimated forward FAD (funds available for distribution) yield of 4.73%, which represents an attractive positive yield spread versus 10 year government bonds, with real earnings growth forecast over the next few years.
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