Industry Research: Real Estate Investment Trusts

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Industry Research: Real Estate Investment Trusts
  • Industry Research: Real Estate Investment Trusts
  • Year : Mar 2020
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Summary

The rating of CC(ZA) accorded to Rebosis Property Fund is not derived from the ACE but is rather a factor of expected default scenario.The graphs presented highlight the relationship between various REIT characteristics and the component scores that comprise the Anchor Credit Evaluator accorded to each by GCR.1 From a high-level overview, the risk scores for GCR’s published universe of REIT ratings range from 8 (equivalent to a B+(ZA) rating) to 16.75 (equivalent to a AA-(ZA) rating).

Additional Information

As per GCR’s rating framework, the most significant factors in determining the ACE for all South African REITs are the country and sector risk scores. In many cases, however, South African listed REITs have achieved an operating environment score in excess of the domestic operating environment score due to the rising proportion of investment assets domiciled in more developed countries, particularly in Western European and Australia.

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