'Speed dating' at the JSE

2006-08-14

The buzz around the property market persists as more than 450 people attended the first annual JSE listed properties showcase held recently.

A bigger venue had to be arranged to accommodate the crowd and some prospective investors were turned away because of lack of space.

The CEOs of 13 listed property stocks each had ten minutes to “sell” their company to investors, analysts, stockbrokers and private clients.

“The process is similar to speed dating,” reckoned James Templeton, CEO of Emira Property Fund. He added that hopefully everyone would leave with something they liked.

Listed property stocks have plummeted since the market peak and many lost nearly a fifth of their value in a few weeks. Analysts maintain that while share prices have fallen, rentals and income of property companies are hardly affected. They reckon good value now exits, which offers favourable buying opportunities.

Here’s a pens-sketch of the presenting companies, listed according to market cap:

Madison Property Fund Managers

Combined market cap: R13bn
Market cap: R893m
Listed: 7 June 2006
Managers of three listed property companies: Redefine, Hyprop and ApexHi.
Historical dividend yield (DY): -
Historical price to earnings (P/E) ratio: -

Growthpoint Properties

(including Metboard acquisition)
Market cap: R8,44bn
(to increase by R1,3bn after issue of new linked units to Metboard unitholders) Listed: 1987
Number of properties: 350
What sectors it invests in: 39,1% retail, 36,5% offices, 24,5% industrial (based on property value)
Location of properties: 71% Gauteng, 9,8% KwaZulu-Natal, 11,2% Western Cape, 8% Eastern Cape
Historical DY: 7,5
Historical P/E ratio: N/A
Biggest properties:



ApexHi Properties

Market cap: R6,24bn (A and B units combined)
Listed: March 2001
Number of properties: 444
What sectors it invests in: 44% retail, 39% offices, 17% industrial
(based on gross lettable area)
Locations: 56% Gauteng, 12% KwaZulu-Natal, 7% Western Cape, 5% North West, 7%v Mpumalanga, 6% Eastern Cape, 3% Free State, 3% Limpopo, 1% Northern Cape
(based on gross lettable area)
Historical DY: 9,3% (A)  9,6% (B)
Historical P/E ratio: 9,35 (A)>  9,17 (B)
Its biggest properties:



Hyprop Investments

Market cap: R4,29bn
Listed: 1988
Number of properties: 14
What sectors it invests in: 90% retail, 10% offices
(based on revenue)
Locations: 53,58% Gauteng, 0,32% KwaZulu-Natal, 46,1% Western Cape  (based on revenue and excludes listed properties securities)
Historical DY: 6,4%
Historical price to earnings P/E ratio: 12,66
Its biggest properties:



Redefine Income Fund

(offer announced in July to purchase Spearhead Property Holdings)
Market cap: R3,05bn
Listed: February 2000
Number of properties: 70
What sectors it invests in: 24,% retail, 40% offices, 36% industrial (excl (by gross lettable area)
Locations: 73,7% Gauteng, 10,1% KwaZulu-Natal, 12,3% Western Cape, 1,6% Limpopo, 1,8% Mpumalanga, 0,5% Free State
(based on gross lettable area)
Historical DY: 8,1%
Historical P/E ratio: 19,6
Its biggest properties:



Emira Property Fund

Market cap: R2,58bn
Listed: November 2003
Number of properties: 85
What sectors it invests in: 36% retail, 49% office, 15% industrial
(based on property value)
Locations: 73% Gauteng, 11% KwaZulu-Natal, 9% Western Cape, 6% Free State, 1% North West
Historical DY: 7,9%
Historical P/E ratio: 11,11
Its biggest properties:



SA Retail Properties

Market cap: R2,33bn
Listed: November 2001
Number of properties: 25
What sectors it invests in: 100% retail
Where its properties are: 44% Gauteng, 43% KwaZulu-Natal, 13% Western Cape (based on net income)
Historical DY: 7,1%
Historical P/E ratio: 12,35
Its biggest properties:



Resilient Property Fund

Market cap: R2,24bn
Listed: December 2002
Number of properties: 22
What sectors it invests in: 99% retail, 1% commercial
(based on property value)
Where its properties are: 0,5% Gauteng, 12,1% KwaZulu-Natal, 17,9% North West 47% Limpopo, 15,8% Mpumalanga, 6,7% Northern Cape
(based on property value)
Historical DY: 6,4%
Historical P/E ratio: 16,4
Its biggest properties:



Martprop Property Fund

(proposed name change: SA Corporate Real Estate Fund)
Market cap: R2,15bn
Number of properties: 127
What sectors it invests in: 28% retail, 9% offices, 63% industrial
(based on property value)
Where its properties are: 39% Gauteng, 50% KwaZulu-Natal, 11% Western Cape
(based on property value)
Historical DY: 8,6%
Historical P/E ratio: 10,87
Its biggest properties:



Vukile Property Fund

(including MICC Property Income Fund)
Market cap: R2,08bn
Listed: June 2004
Number of properties: 92
What sectors it invests in: 55,5% retail, 30,7% offices, 13,8% industrial
(based on gross rentals)
Where its properties are: 45% Gauteng, 28% KwaZulu-Natal, 6% Western Cape, 2% Eastern Cape, 4% Free State, 2% Limpopo, 5% Mpumalanga, 2% North West, 6% Namibia (based on gross rentals)
Historical DY: 9%
Historical P/E ratio: 10,31
Its biggest properties:



Capital Property Fund

Market cap: R1,64bn
Listed: 1984
Number of properties: 61
What sectors it invests in: 35% retail, 30% offices, 35% industrial
(based on property value)
Where its properties are: 45% Gauteng, 10% KwaZulu-Natal, 37% Western Cape, 8% other (based on property value)
Historical DY: 8,4%
Historical P/E ratio: 11,11
Its biggest properties:



Diversified Property Fund

Market cap: R834m
Listed: October 2005
Number of properties: 41
What sectors it invests in: 37,4% retail, 6,8% offices, 55,8% industrial (based on property value)
Where its properties are: 56,9% Gauteng, 8,3% KwaZulu-Natal, 2,3% Western Cape, 6,5% Limpopo, 21,7% Eastern Cape, 3,2% Mpumalanga, 1,1% Northern Cape (based on gross rentals)
Historical DY: 7,4%
Historical P/E ratio: 16,67
Its biggest properties:



Hospitality Property Fund

Market cap: R800m
Listed: February 2006
Number of properties: 16
What sectors it invests in: 38% conference, 30% corporate, 32% leisure (based on patronage)
Where its properties are: 54% Gauteng, 16% KwaZulu-Natal, 16% Western Cape, 13% Eastern Cape, 1% Mpumalanga (based on purchase price)
Historical DY: not available
Historical P/E ratio: N/A
Its biggest properties:

Source: Moneyweb - www.moneyweb.co.za

Get commercial property news by email

Free alerts when we publish — pick a focus or get everything, unsubscribe in one click. Subscribe »

More commercial property news

All news from 2006 »

Guides you may find useful

Digital Broker