Allan Gray The Allan Gray Podcast

25. SA listed property: The appeal of fixed assets in an uncertain world

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South African listed property has shifted from being a leading wealth creator in the early 2000s to one of the weakest performers over the past decade on the back of sluggish economic growth, ongoing infrastructure challenges and the impact of COVID-19 on retail and office space demand. Over the last year, the sector has shown signs of recovery. Is it time to cement the opportunity, or should it be approached with caution? In conversation with Allan Gray portfolio manager Siphesihle Zwane, investment analysts Ghiete van Zyl and Umar-Farooq Kagee explore how we apply our long-term investment approach when considering opportunities in listed property. They also unpack the distinctive features of this asset class and explain the fundamental drivers of the sector’s longer-term prospects.
Chapters
  • 00:00 Introduction
  • 04:20 The features and benefits of real estate investment trusts (REITs)
  • 12:30 From boom to bust - how the sector has performed in recent decades
  • 19:30 How macroeconomic factors drive the sector's performance
  • 23:30 Understanding the retail property sector
  • 34:20 The oversupply of commercial property in Johannesburg
  • 38:30 Understanding the storage business
  • 41:50 Factors that shape logistics and warehousing
  • 43:00 Should SA REITs invest in offshore property?
  • 45:53 How we think about valuing listed property companies
  • 50:20 Closing and summary
24 Apr English South Africa Business · Investing

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