JSE listed offshore property ETFs

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Global REIT ETFs on the JSE

Global REIT ETFs on the JSE

Listed property stocks (REITs) remain stuck locally and globally and this week we’re looking at the JSE listed offshore property ETFs. There are three of them (two tracking the same underlying index) and they’ve really only been helped by Rand weakness over the last couple of years.

Local REIT ETF are here.

Office remains stuck (see the Kastle office occupancy in the US here), globally and locally. But offshore REITs are a very diverse asset class with storage, cell towers, residential, healthcare and the like included.

Geographically the US is about 70% of the indices with Japan, Hong Kong, Australia and Singapore making up most of the balance.

10X S&P Global Property Exchange Traded Fund GLPROP* 0.28% 2.4% (bi-annual) Tracks the S&P Global Property40 Index
1nvest Global REIT Index Feeder ETF ETFGRE 0.34% 2.9% (quarterly) Tracks the FTSE EPRA/NAREIT Global REIT Index
Sygnia Itrix Global Property ETF SYGP 0.27% 2.6% (bi-annual) Tracks the S&P Global Property40 Index

The chart below shows 5 year returns excluding dividends. Surprisingly dividend yields are modest, maybe in part because the issuer takes their fees from the dividends, but I would still have expected more. And certainly the returns have not thrilled, but this has been a tough sector over the last four years so that’s no surprise.

I hold, but a small position as I get some duplication from my general diverse global ETF holdings and in many ways prefer the valuations from the local REIT sector which we’ll cover next week.

Simon Brown

* I hold ungeared positions.

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