Listed property outlook less bullish

9 August 2013
| By Staff |
image
image
expand image

Ratings house, Zenith Investment Partners has cautioned that the listed property sector is unlikely next year to repeat the strong performance it has turned in over the past 12 months. 

The company made the prediction while releasing its 2013 Listed Property Review, with investment analyst Jonathan Baird pointing not only to changed conditions but also investment team turnover impacting many of the managers rated by Zenith. 

Baird described the personnel turnover situation as having a "domino effect". 

He said Zenith expected the high level of turnover to continue, with a number of managers seeking experienced personnel to fill key vacancies. 

Baird's analysis said that despite these issues, the listed property dector, both domestically and abroad, had performed strongly during the 12 months to May 2013, with the S&P/ASX 300 (A-REIT) Index rising 30.62 per cent and the FTSE Developed Rental Index returning 25.55 per cent.  

"Many managers have indicated that the sector's strong returns over the past 12 months have increased the number of securities trading above fair value, and therefore the magnitude of returns over the past 12 months are unlikely to be replicated in the coming year," he said. 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 2 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 3 days ago