South African (JSE) Real Estate Sector Analysis
UpdatedNov 28, 2022
DataAggregated Company Financials
Companies42
- 7D0.9%
- 3M2.7%
- 1Y1.3%
- YTD-7.7%
In the last week, the Real Estate industry is flat overall, with Redefine Properties standing out by going down 5.1%. In line with that, the industry has also been flat over the past 12 months. As for the next few years, earnings are forecast to decline by 22% per annum.
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 |
|---|---|---|---|---|---|---|
| Mon, 28 Nov 2022 | R334.6b | R80.9b | R39.9b | 6.1x | 8.4x | 4.1x |
| Wed, 26 Oct 2022 | R316.2b | R76.3b | R30.0b | 7.9x | 10.5x | 4.1x |
| Fri, 23 Sep 2022 | R313.9b | R79.3b | R31.5b | 7.1x | 10x | 4x |
| Sun, 21 Aug 2022 | R321.8b | R76.7b | R29.3b | 7.7x | 11x | 4.2x |
| Tue, 19 Jul 2022 | R308.4b | R75.4b | R28.7b | 7.1x | 10.8x | 4.1x |
| Thu, 16 Jun 2022 | R311.3b | R73.3b | R25.7b | 7.3x | 12.1x | 4.2x |
| Sat, 14 May 2022 | R320.2b | R72.7b | R22.4b | 8.2x | 14.3x | 4.4x |
| Mon, 11 Apr 2022 | R344.0b | R73.8b | R20.3b | 8.8x | 16.9x | 4.7x |
| Wed, 09 Mar 2022 | R325.0b | R77.5b | R20.2b | 8.2x | 16.1x | 4.2x |
| Fri, 04 Feb 2022 | R346.1b | R79.0b | R17.7b | 8.9x | 19.5x | 4.4x |
| Sun, 02 Jan 2022 | R349.2b | R77.7b | R17.8b | 8.8x | 19.7x | 4.5x |
| Tue, 30 Nov 2021 | R324.4b | R77.3b | R15.9b | 9.4x | 20.4x | 4.2x |
| Thu, 28 Oct 2021 | R320.9b | R76.0b | -R237,660,538.00 | 9.6x | -1350.4x | 4.2x |
| Sat, 25 Sep 2021 | R330.1b | R75.2b | -R3,513,212,523.00 | 13.8x | -94x | 4.4x |
| Mon, 23 Aug 2021 | R325.1b | R74.7b | -R22,701,899,978.33 | 14.2x | -14.3x | 4.4x |
| Sat, 10 Jul 2021 | R314.5b | R74.7b | -R22,701,899,978.33 | 13.8x | -13.9x | 4.2x |
| Fri, 02 Apr 2021 | R285.9b | R74.5b | -R36,392,625,259.72 | 13.3x | -7.9x | 3.8x |
| Mon, 04 Jan 2021 | R270.7b | R76.6b | -R54,941,346,107.51 | 11.6x | -4.9x | 3.5x |
| Thu, 08 Oct 2020 | R222.8b | R81.1b | -R54,454,249,974.52 | 12.9x | -4.1x | 2.7x |
| Wed, 01 Jul 2020 | R259.2b | R83.7b | -R40,981,797,647.33 | 14.2x | -6.3x | 3.1x |
| Sat, 04 Apr 2020 | R221.3b | R86.5b | -R8,124,212,529.78 | 12x | -27.2x | 2.6x |
| Tue, 07 Jan 2020 | R411.8b | R84.1b | R22.8b | 11.4x | 18x | 4.9x |
Price to Earnings Ratio
17.5x
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 8.4x which is higher than its 3-year average PE of -6.2x.
- The industry is trading close to its 3-year average PS ratio of 3.9x.
Past Earnings Growth
- The earnings for companies in the Real Estate industry have grown 19% per year over the last three years, while revenues have remained mostly flat.
- This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the South African Real Estate sector?
| ZA Market | 0.94% | |
| Real Estate | 0.88% | |
| Real Estate | 2.92% | |
| REITS | 0.10% | |
Industry PE
- Investors are most optimistic about the Real Estate industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings decline of 6.2%, which is lower than the prior year's growth of 98.8% per year.
- Investors are most pessimistic about the REITS industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Despite it being negative, analysts are least pessimistic on the Real Estate industry since they expect its earnings to decline by only 6.2% 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 99% per year.
- In contrast, the REITS industry is expected to see its earnings decline by 22% per year 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 | |
|---|---|---|---|---|---|
| NRP NEPI Rockcastle | R102.52 | 2.9% +R1.8b | 4.4% | PB0.9x | |
| FFA Fortress REIT | R10.83 | 3.9% +R889.9m | -11.1% | PB0.9x | |
| GRT Growthpoint Properties | R14.09 | 1.8% +R851.9m | 14.6% | PB0.7x | |
| ATT Attacq | R7.78 | 8.1% +R409.0m | 18.4% | PB0.4x | |
| VKE Vukile Property Fund | R14.66 | 2.4% +R333.3m | 22.2% | PB0.8x |