Nine South African real estate investment trusts (Reits) are in the Top 100 Companies listed on the JSE, based on value created for shareholders over five years.

The sector’s top player was Fortress Income Fund B, which earned second place overall with a compound yearly growth rate of 58.51%. Other top performing Reits include Resilient Reit, Hyprop Investments, South African Corporate Real Estate, Dipula Income Fund B, Octodec Investments, Investec Property Fund, Redefine Properties and Oasis Crescent Property Fund.

The sector comprises some 30 counters with a market capitalisation of around R360-billion.

“Local Reits continue to perform well for investors and deliver solid, sustainable results,” South African Reit Association chairperson Laurence Rapp commented.

He added that these trusts played a key role in providing affordable access to property ownership, as well as contributing to the savings of South Africans.

“The prolific presence of Reits among the country’s top listed investments and the sector’s positive performance record are among the solid reasons that any serious investor should consider meaningful exposure to the listed property asset class as a must-have.”

According to research conducted by Grindrod Asset Management on behalf of the association, local Reits delivered respectable total returns of 12.3% for this year to the end of October, hot on the heels of South African equities at 15.8%, and significantly outstripping cash at 6.08% and bonds at 2.2%.

The Top 100 Companies awards acknowledge those listed companies that have created the most wealth and value for shareholders. The share price performance of every company listed on the JSE is calculated using a hypothetical initial investment of R10 000 in each share over five years, from September 1, 2011, to August 31, 2016.

Companies are then ranked according to their share price performance, as calculated by financial services company INet BFA. The results were recently published in the Top 100 Companies survey carried out by the Sunday Times Business Times.