Market Wrap - Stock Pick — Equites

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Nesi Chetty from Stanlib chose Equites Property Fund as his stock pick of the day.

"My stock pick is a company we've liked for a while, it's called Equites. It's got a very large local portfolio, the size is about R12 billion. They've done quite well in that logistic space. They own manage and develop logistic containers and the yields on that are very attractive. They're able to secure long-term leases of between seven and nine percent and they've done well to diversify and externalize the company with 32% of the operations are now derived from the UK and they have quite a nice joint venture in the UK market where they can access a pipeline there. They are one of the few companies that has re-rated quite a bit and it's yield has gone from about 9% all the way down to about 7,5% but even with that it's still able to give you 8% or 10% growth which is a real level that not everyone's doing in this market, so we're happy to be invested in it and the ability for them to unlock deals on the let's call it GLA development area for 109,000 square meters is quite exciting for us and we think over time there will be potentially maybe consolidation down the line as well in this space."
26 Jun 2019 2AM English South Africa Business · Business News

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