Property trusts rebound should continue in second half, Alec Hogg reports.
Nothing rises indefinitely. So with three 40% plus years on the JSE, many share market investors are keen to park some of their profits. Property unit trusts offer a safe haven for these nervous souls. At least for 2007.
Property unit trusts invest in JSE-listed real estate companies which are landlords of shopping (retail), office and industrial complexes. Their value comes from the combination of annual capital appreciation and the rental income generated by their properties.
The prices of property unit trusts have enjoyed a substantial uplift over the past five years, making them the best performing sector of any on the JSE. This is a result of a structural change in the absolute level of South African interest rates.
The JSE Listed Property Index ended 2006 with a gain of 28%. But it was a roller coaster ride.
Read the full article at Moneyweb.co.za
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