Catalyst SA Monthly Report July 2015

Real Estate fundamentals in South Africa remain challenging, but strong capital markets and lower yields for longer have been supportive of listed real estate pricing. South African listed property companies continue to seek external drivers of distribution growth. Global Listed real estate currently trades at an estimated forward FAD (Funds Available for Distribution) yield of 4.79%, which for a long term investor still appears attractive given where current 10 year government bonds are and the current growth environment. As bond yields move out we expect some volatility in the short term but the real estate sector appears to be pricing this in. Read more here – Catalyst SA Monthly Report Jul 2015