The property sector recovered some of it losses during the month of September. The Fund returned 1.7% for the month which brings the year to date return to a positive 1.6%. The financial results of Growthpoint and Hyprop Investments reflect the current market pressures. Growthpoint’s annual distributions grew by 5.5% whilst Hyprop contacted by -1.5%.

Even with the contraction, Hyprop stock is trading at a historic dividend yield of 12% which is generous, whilst growth in the distributions for 2020 is expected to remain muted. Growthpoint dividend yield is 9.9%. The listed property sector in South Africa could remain volatile but the income generated from dividends could potentially cushion some of the volatility in the capital returns.