Investigation into the supply of information and measurement of transparency in the listed property sector

Abstract

This article investigates the information that is available to shareholders and the public by listed property companies in order to make investment decisions. It also mentions the usefulness of this information for purposes of mass valuation of the portfolio of properties that are owned by these entities, or to extrapolate to other non-portfolio properties. The study makes use of a multiple regression analysis with empirical testing of property loan stock (PLS) companies in South Africa. It was found that only six of the PLS companies publish any useful information with regards to their property portfolio and only one provided sufficient information to be of statistical significance. It was also found that the provided information is lacking specific property and portfolio details and is, therefore, of limited use overall as far as investment decision-making is concerned. The method applied is, however, confirmed to be applicable for mass valuation techniques, but limited by the amount of information available.

Die artikel ondersoek die inligting wat aan aandeelhouers en die publiek beskikbaar gestel word deur genoteerde eiendomsfondse om sodoende beleggingsbesluite te neem. Die bruikbaarheid van hierdie inligting vir doeleindes van massawaardasietegnieke van die portfolio of nie-portfolio eiendomme word ook gemeld as ‘n sekondere aanwending. Veelvoudige regressie analise word gebruik met empiriese toetse van die eiendomsleningseffekte maatskappye in Suid-Afrika. Die ondersoek het bevind dat slegs ses van die maatskappye enige bruikbare inligting publiseer ten opsigte van hul eiendomsportefeulje en slegs een genoegsame inligting publiseer om statisties beduidend te wees. Dit was ook bevind dat die inligting tekortkom ten opsigte van eiendoms- en portefeulje spesifieke besonderhede om beleggingsbesluite te neem. Die metode wat toegepas is, bevestig egter die gebruik van massawaardasietegnieke, maar dat dit beperk word deur inligting wat beskikbaar is.