Hyprop

“The South African listed property sector erased all its losses of the first quarter of 2026 despite the continued lingering conflict in the Middle East as investors seem to be looking through the inconsistent messaging of a potential long-term peace deal in the region. Despite the strong rerating through the 10.5% return for the quarter to end June (Q2), partly driven by an improvement in the bond market, the sector is still at levels lower than the recent peak just prior to the outbreak of the conflict at the end of February. Fundamentally, the sector continues to perform strongly, with good cost management and stable vacancies, while making inroads into a progressively improved rental environment. From a relative performance viewpoint, the sector outperformed both the FTSE/JSE All Share Index and FTSE/JSE All Bond Index for the quarter. This resulted in outperformance over 12 and 36 months as well, with annualised returns of 28.7% and 26.9%, respectively over these time periods. The FTSE/JSE All Property Index’s one-year forward dividend yield is 7.2%.”