The listed property sector returned to positive territory in April, with the major indices rebounding after a weak first quarter. While the gains did not fully reverse earlier losses, the recovery restored positive momentum and reinforced the investment case for the asset class.
According to the Golden Section Equity Review for April, the all-property index delivered a monthly return of 5.76% while the South Africa listed property index rose 5.40%, lifting the one-year rolling return to 28.16% as performance improved markedly from the first quarter.
“Corporate activity in April was among the busiest the sector has seen in recent memory. The standout transaction was Emira Property Fund’s acquisition of a 20.17% stake in Octodec Investments, followed by a voluntary cash offer for a further 14.73%,” Golden Section Equity Capital MD Garreth Elston said.
Fortress also issued a R1.6bn domestic medium-term note referenced to a Zaronia-based instrument — a first for a JSE-listed property counter and a key milestone as South Africa transitions away from legacy market reference rates.
However, Elston cautioned that the geopolitical backdrop remains key to the sector’s interest rate and rand outlook. Ongoing Middle East tensions, with the lack of a clear US exit strategy, are sustaining volatility in oil prices and the rand, and shaping the South African Reserve Bank’s rate path into 2026. The effect on listed property is expected to be felt mainly through discount rate assumptions and the income outlook for offshore-exposed counters.
Still, the listed property sector sustained strong activity in the debt market, with all issuances taking place after the onset of the Middle East war. Reits and property companies including Attacq, Fortress, Hyprop, Redefine and Resilient raised R5.75bn through domestic medium-term note issuances, which were fully oversubscribed and priced at lower, in some cases record-low, margins.
Demand was driven by institutional investors and banks, said independent property analyst Keillen Ndlovu.
Despite the overshadowing macro backdrop, he noted that further transactions are expected in the property sector, with Spear and Fairvest planning to allocate part of their bookbuild proceeds to property acquisitions. Hyprop is also considering acquiring minority undivided shares in The Glen Mall in Johannesburg and Canal Walk Shopping Centre in Cape Town.
“Equity raises have resumed via accelerated bookbuilds, with Spear and Fairvest securing R1bn and R900m, respectively, in late April; both bookbuilds were oversubscribed. Assuming the markets remain stable, we are likely to see the positive trend in bookbuilds continue. Meanwhile, Fortress retained R133m through a capitalisation issue,” Ndlovu said.
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