Gert van Rensburg, head of Multi-Manager at STANLIB recently expounded the virtues of their listed property portfolio.
The prospects for the listed property market certainly look exciting and if interest rates remain at these levels and inflation does not become a major problem then property share prices can continue to rise.
Over the long term, income yields from the property sector have been fairly consistent and STANLIB Multi-Manager is forecasting a 10.5% (pre-fees) income yield over the next 12-months.
This is at the conservative end of forecasts presented to us in the recent review of property managers.
The managers in general have become more bullish on the prospects for the property sector compared to six months ago.
Valuations remain attractive, but regardless of which way share prices move, it’s the consistency of income yields that makes property an attractive investment opportunity for investors over the long term.
Health warning: this article should not be construed to offer advice. For more information speak to a specialist.
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