This report benchmarks the top 20 REITs by market capitalisation in three categories: Foreign REITs, South African-based diversified REITs, and South African specialised REITs. We benchmark key metrics from the balance sheet, income statement and operational metrics. This benchmarking provides a useful reference point to compare the various REITs against their peers.
We also provide a breakdown of the guided distributions for the next reporting period, and in our view, the sustainability of those distributions going forward. Where the REITs are raising funding or buying assets, the distributions are becoming more sustainable as most REITs either reduced payout ratios or DPS over the past few years. We have highlighted some names which we think may struggle to maintain their current distributions, without funding distributions through debt or equity raises.
We show assets, debt, revenue and FFO for all the REITs in ZAR million to be able to compare more easily. Further, we provide a calendar with the results dates for the 20 REITs.
We have not included SUPR (SRI) in this report, as it was not listed in the PY on the JSE, although it will be included next year. In our view, LTE and RES disclosure is lacking, and LTE does not apply REIT best standards.