Source: Bloomberg, Catalyst Fund Managers, 2022 YTD: As of 30 June 2022

Global and local headwinds were exacerbated with the ongoing geopolitical uncertainty, higher interest rates, slowing economic growth, persistent inflation and severe load shedding weighing heavily on sentiment during the year. SA listed property (SAPY) and All Property Index (ALPI) delivered returns of -12.7% and -13.5% for the year to date (ended 30 June 2022). SA listed property underperformed other asset classes including equities (-8.3%), bonds (-1.9%) and cash (2.2%) over the comparable period.

Source: Company data, Bloomberg, Catalyst Fund Managers, as at 30 June 2022.Black highlight = Index returns, Grey highlight = offshore companies listed on the JSE

Notable outperformers year to date were Irongate, Fortress B and Vukile.

  • Irongate received a cash offer of AUD1.90 per share from Charter Hall managed partnership on 28 January 2022. This equated to a 17.5% premium to the JSE closing price prior to the announcement. During June 2022 shareholders voted to accept the offer and Irongate will subsequently be delisted.
  • On the 23rd of May 2022, Fortress announced that the board has appointed an independent subcommittee to make recommendations regarding a merger of the A and B shares into a single class of ordinary share. Subsequently, on the 20th of June 2022, Fortress released a firm intention announcement with a ratio of 3.01 FFB for every FFA share. The circular and voting deadline is yet to be announced.
  • During the year Vukile, through their majority held subsidiary, Castellana, acquired a 21.7% stake in listed Lar Espana. Lar Espana is a Spanish retail focused property company and complements Castellana’s existing retail portfolio. In June 2022, Vukile reported strong results with funds from operations (FFO) per share increasing by 6.8% year-on-year. Vukile expects to deliver FFO and DPS growth of between 5% to 7% for the year ending 31 March 2023.

Offshore focused property companies were the notable underperformers during the year with all having exposure to Europe and/or UK. Notable exceptions are MAS Real Estate and Irongate.