JSE REIT Portfolio (Property Income Without Tenants) South Africa

Who it’s for:

Investors wanting property exposure and regular cash distributions without managing a flat.

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Startup cost:

Flexible; brokerage minimums apply.

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Time to first rand:

Quarterly or semi‑annual distributions (varies by REIT/ETF).

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Tools & Accounts

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• Standard brokerage account (or TFSA if eligible instruments are allowed).

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Step‑by‑Step

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1. Screen REITs/REIT ETFs: sector mix (retail, logistics, office, residential), payout history, loan‑to‑value

(LTV), and vacancy rates.

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2. Build a basket (e.g., 3–6 counters) or choose a REIT ETF for diversification.

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3. Stage your buys monthly/quarterly to average in.

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4. Elect distribution handling (reinvest vs. pay out). For income now, choose pay out.

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5. Review half‑yearly results and adjust allocations if fundamentals change.

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Automation

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• Monthly contribution + auto‑buy.

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• Calendar reminders for results season.

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Compliance & Tax (High‑level)

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• In SA, REIT “dividends” are generally taxed as income at your marginal rate. Keep records for your

ITR12.

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Risks & Fixes

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• Sector concentration: Prefer diversified REIT ETF or spread sectors.

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• Interest‑rate sensitivity: Keep some cash/bonds as ballast.

Scale‑Up

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• Add global property ETF exposure for currency diversification (in a normal account).

KPIs

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• Net distribution yield; distribution cover; LTV; vacancy; 12‑month income trend.