Our opinion on the current state of FTBPROPB(FTB)

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Fairvest (FTB) is a real estate investment trust (REIT) specializing in investing in smaller rural and non-urban shopping centers that focus on consumers with a lower living standard measure (LSM). It has 131 properties valued at R11.8 billion, broken down as 67% retail, 23% office, and 10% industrial. It also owns 60.9% of Indluplace (ILU) and 5.1% of Dipula (DIB). The company boasts that it is the top-performing REIT in South Africa, with a return to investors of just under 18% for the year.

In its results for the six months to 31st March 2024, the company reported revenue up 4.9% and headline earnings per share (HEPS) up 5.3% for the "A" shares and down 6.9% for the "B" shares. The loan-to-value (LTV) was 32.6% and vacancies were 5.3%. The company said, "We anticipate net property income growth, on a like-for-like basis exceeding inflation and positive renewal reversion from all sectors for the full financial year."

Technically, the share was in a steady upward trend since April 2020 but has been moving sideways and upwards recently, especially since the latest results. Fairvest remains one of the better options in the property sector.