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South African (JSE) REITS Industry Analysis

UpdatedDec 02, 2021
DataAggregated Company Financials
  • 7D5.3%
  • 3M1.3%
  • 1Y24.2%
  • YTD24.0%

Over the last 7 days, the REITS industry has risen 5.3%, driven by gains from Growthpoint Properties of 15%. Meanwhile, Redefine Properties actually underperformed within the industry, shrinking 8.1% in the last week. This takes the industry's 12 month performance to a gain of 24%.

Industry Valuation and Performance

Has the South African REITS Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Sun, 05 Dec 2021R233.0bR57.9bR13.4b9.4x
Tue, 02 Nov 2021R229.0bR57.3b-R1,996,451,283.009.8x
Thu, 30 Sep 2021R232.1bR56.8b-R5,995,424,310.0014x
Sat, 28 Aug 2021R232.5bR56.8b-R24,384,644,702.4714.4x
Sun, 04 Jul 2021R223.3bR56.8b-R24,384,644,702.4713.8x
Wed, 07 Apr 2021R202.2bR56.2b-R34,336,861,702.4713.5x
Sat, 09 Jan 2021R189.1bR57.2b-R49,637,686,800.2113.1x
Fri, 02 Oct 2020R161.3bR59.8b-R51,879,630,620.0613x
Mon, 06 Jul 2020R182.0bR62.1b-R41,122,016,030.0213.6x
Thu, 09 Apr 2020R156.9bR64.2b-R14,372,187,922.3714x
Wed, 01 Jan 2020R300.3bR64.7bR12.6b11.8x
Sat, 05 Oct 2019R308.1bR65.0bR18.3b11.1x
Tue, 09 Jul 2019R330.4bR64.7bR20.9b11.3x
Mon, 01 Apr 2019R326.6bR64.5bR8.8b10.8x
Thu, 03 Jan 2019R331.8bR63.4b-R1,413,061,211.579x
PE Ratio


Total Market Cap: R331.8bTotal Earnings: -R1,413,061,211.57Total Revenue: R63.4b0%0%0%3 Year10 Year

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 12.3x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: Total earnings for the REITs industry have gone up over the last three years, and the industry is now profitable. However revenues have declined 3.0% per year. This means that less sales are being generated overall, but since the cost of doing business is lower, profits have been increasing.

Industry Trends

Which industries have driven the changes within the South African REITS industry?

Retail REITs6.54%
Industrial REITs6.11%
Diversified REITs4.95%
Residential REITs2.23%
Specialized REITs2.22%
Office REITs-2.25%

Industry PE: Investors are most optimistic about the Diversified REITs industry even though it's trading below its 3-year average PE ratio of 13.2x. However analysts are expecting annual earnings growth of 52%, which is lower than the prior year's growth of 190% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Residential REITs industry, which is trading below its 3-year average of 14.1x.

Forecasted Growth: Analysts are most optimistic on the Diversified REITs industry, expecting annual earnings growth of 52% over the next 5 years. However this is lower than its past earnings growth rate of 190% per year.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

GRT Growthpoint Properties15.0%+R6.3b15.0%PB0.7x
RES Resilient REIT8.7%+R1.7b42.6%PB1.1x
FFA Fortress REIT5.7%+R1.6b-0.9%PB1.1x
HYP Hyprop Investments10.1%+R1.1b9.7%PB0.6x
VKE Vukile Property Fund8.6%+R984.9m64.9%PB0.7x
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