Listed property outlook less bullish
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.
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