Search:  
Gauteng Business News
2595
VIEWS

Send  Share  RSS  Twitter  20 Jun 2011

PROPERTY: Short-term or Long-term, Property Loan Stocks Perform

 





Recent Gauteng Business News

Property Loan Stocks continue to pique the interest of both small and large investors, thanks to strong returns tracked in the short-term and exceptional results posted over the long-term.

“Property Loan Stocks (PLSs) are delivering solid performance over long, medium and short time periods,” says Norbert Sasse, chairman of the Property Loan Stock Association (PLSA) and CEO of Growthpoint Properties Limited.


“And investors are taking note.”

Research published by the PLSA and undertaken by Grindrod Asset Management demonstrates that some PLSs are already showing around double-digit returns for the year-to-date to May 2011: Fortress B is at some 15.9% and Octodec 8.4%

In the three month period to 31 May 2011, highest returns were reported by Fortress B, Octodec, and Growthpoint Properties with total returns of 18.1%, 13.0% and 10.8%, respectively.

A key attraction of PLSs, points out Sasse, is that they face no restrictions on gearing or payout ratios. Strong results in an economy just emerging from the global recession are noteworthy, but investors should note the long-term performance of PLSs, too.


“Over the past decade, PLSs have outperformed the SA listed property index as a whole, and also the All Share and the bond market – and by a healthy margin,” explains Sasse.

Over the past ten years, Premium has returned the best overall performance at 37.0%, closely followed by Octodec at 33.0% percent.

Market capitalization in the PLS sector continues to increase, making it a force to be reckoned with.

“The PLS sector is close to the R90 billion mark spread over 13 publicly-traded companies, which include the recently listed Investec Property and Rebosis,” explains Sasse.

The sector giants are Growthpoint with a market cap of just under R29 billion, and Redefine with R21 billion.


 
 
 
HBC-Solutionsstudy-it-onlinespaceacreBusiness Profilesohse-consultancy
 
   
 
 
 
  Accomodation
Accommodation


Online Foreign Exchange
Foreign Exchange


Directory
Directory


Fax
Fax 2 Email


Finance
Finance


Furniture
Furniture


Casino
Online Casino


Restaurant
Restaurant


Auctions
Shop Online


Study IT
Study IT Online


Web design
Web Design


Weddings
Weddings


Work
Work from Home
 
 
 
 
 
Company News
 
 

 

© 2019 www.gbn.co.za. All rights reserved.

Daily Newsletter Subscription

 

Subscribe to the Gauteng Business News Daily News and information email (it's free).

Thank You
Your email address has been added.

Name:
Email Address: