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.
To read more, please download the Catalyst monthly report here
Leave a Comment