South African (JSE) Real Estate Sector Analysis
UpdatedApr 17, 2024
DataAggregated Company Financials
Companies35
- 7D-3.7%
- 3M5.1%
- 1Y6.6%
- YTD2.3%
Over the last 7 days, the Real Estate industry has dropped 3.7%, driven by pullbacks in Growthpoint Properties and Fortress Real Estate Investments of 9.2% and 9.2%, respectively. In the past year, the industry has gained 6.6%. Looking forward, earnings are expected to remain mostly flat in the next few years.
Sector Valuation and Performance
Has the South African Real Estate Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 17 Apr 2024 | R325.4b | R95.2b | R43.8b | 6.6x | 7.4x | 3.4x |
| Fri, 15 Mar 2024 | R337.5b | R92.5b | R43.9b | 7x | 7.7x | 3.7x |
| Sun, 11 Feb 2024 | R321.9b | R90.2b | R37.9b | 7.6x | 8.5x | 3.6x |
| Tue, 09 Jan 2024 | R342.7b | R97.6b | R39.5b | 8.6x | 8.7x | 3.5x |
| Thu, 07 Dec 2023 | R335.4b | R97.6b | R39.8b | 8.4x | 8.4x | 3.4x |
| Sat, 04 Nov 2023 | R311.9b | R95.6b | R46.2b | 7.7x | 6.7x | 3.3x |
| Mon, 02 Oct 2023 | R315.2b | R95.3b | R46.8b | 7.8x | 6.7x | 3.3x |
| Wed, 30 Aug 2023 | R335.4b | R94.0b | R48.7b | 8.2x | 6.9x | 3.6x |
| Fri, 28 Jul 2023 | R325.6b | R91.8b | R46.3b | 7.9x | 7x | 3.5x |
| Sun, 25 Jun 2023 | R319.6b | R92.5b | R47.7b | 7.8x | 6.7x | 3.5x |
| Tue, 23 May 2023 | R328.9b | R90.5b | R50.3b | 6.5x | 6.5x | 3.6x |
| Thu, 20 Apr 2023 | R335.8b | R88.1b | R52.5b | 6.3x | 6.4x | 3.8x |
| Sat, 18 Mar 2023 | R318.1b | R84.8b | R41.4b | 5.9x | 7.7x | 3.8x |
| Mon, 13 Feb 2023 | R333.4b | R83.0b | R39.9b | 6x | 8.4x | 4x |
| Wed, 11 Jan 2023 | R336.2b | R82.4b | R39.4b | 6x | 8.5x | 4.1x |
| Fri, 09 Dec 2022 | R329.2b | R82.2b | R39.1b | 5.9x | 8.4x | 4x |
| Sun, 06 Nov 2022 | R317.3b | R79.6b | R33.2b | 7.9x | 9.6x | 4x |
| Tue, 04 Oct 2022 | R296.1b | R79.7b | R32.8b | 7.3x | 9x | 3.7x |
| Thu, 01 Sep 2022 | R308.4b | R77.8b | R30.7b | 7x | 10x | 4x |
| Sat, 30 Jul 2022 | R319.8b | R75.3b | R28.6b | 7.4x | 11.2x | 4.2x |
| Mon, 27 Jun 2022 | R308.9b | R74.7b | R27.1b | 7.3x | 11.4x | 4.1x |
| Wed, 25 May 2022 | R313.3b | R72.7b | R22.6b | 8.2x | 13.9x | 4.3x |
| Fri, 22 Apr 2022 | R328.6b | R71.8b | R22.3b | 9.1x | 14.8x | 4.6x |
| Sun, 20 Mar 2022 | R347.7b | R77.5b | R25.1b | 9.2x | 13.8x | 4.5x |
| Tue, 15 Feb 2022 | R343.6b | R78.7b | R17.7b | 8.9x | 19.5x | 4.4x |
| Thu, 13 Jan 2022 | R347.4b | R77.1b | R17.6b | 8.9x | 19.7x | 4.5x |
| Sat, 11 Dec 2021 | R336.6b | R77.5b | R17.7b | 9.3x | 19x | 4.3x |
| Mon, 08 Nov 2021 | R328.3b | R76.1b | R1.6b | 9.6x | 201.4x | 4.3x |
| Wed, 06 Oct 2021 | R321.1b | R75.1b | -R1,820,171,719.00 | 13.9x | -176.4x | 4.3x |
| Fri, 03 Sep 2021 | R327.3b | R74.7b | -R22,701,899,978.33 | 14.4x | -14.4x | 4.4x |
| Sun, 01 Aug 2021 | R310.8b | R74.7b | -R22,701,899,978.33 | 13.8x | -13.7x | 4.2x |
| Wed, 05 May 2021 | R312.3b | R74.5b | -R36,392,625,259.72 | 13.2x | -8.6x | 4.2x |
Price to Earnings Ratio
-8.6x
Current Industry PE
- Investors are pessimistic on the South African Real Estate industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 7.4x which is higher than its 3-year average PE of -1.1x.
- The 3-year average PS ratio of 4.0x is higher than the industry's current PS ratio of 3.4x.
Past Earnings Growth
- Total earnings for the Real Estate industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 8.5% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the South African Real Estate sector?
| ZA Market | -3.90% | |
| Real Estate | -3.70% | |
| Office REITs | 4.58% | |
| Residential REITs | 0% | |
| Hotel and Resort REITs | 0% | |
| Health Care REITs | 0% | |
| Specialized REITs | -1.05% | |
| Retail REITs | -3.16% | |
| Real Estate | -3.40% | |
| Industrial REITs | -4.20% | |
| REITS | -4.64% | |
Industry PE
- Investors are most optimistic about the REITS industry which is trading above its 3-year average PE ratio of 3.4x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
Forecasted Growth
- Despite it being negative, analysts are least pessimistic on the Real Estate industry since they expect its earnings to decline by only 0.2% per year over the next 5 years, which isn't as bad as the other industries.
- This is a reversal from its past annual earnings growth rate of 23% per year.
- In contrast, the Real Estate industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| DIB Dipula Income Fund | R4.00 | 3.6% +R127.7m | -0.2% | PB0.6x | |
| CGR Calgro M3 Holdings | R5.50 | 8.9% +R42.8m | 101.5% | PE2.6x | |
| RES Resilient REIT | R42.26 | 0.2% +R26.7m | -8.1% | PB0.6x | |
| DLT Delta Property Fund | R0.17 | 21.4% +R21.4m | -29.2% | PB0.05x |