Our opinion on the current state of HET

Heriot (HET) is a real estate investment trust (REIT) which owns a diverse portfolio of 44 properties worth R4,827bn in retail, industrial, commercial and specialist property. It was listed on the Alt-X of the JSE on 24-7-2017 but has hardly traded since then. They are developing a property in Adderley Street in Cape Town into 215 residential units. In its results for the year to 30th June 2023 the company reported headline earnings per share (HEPS) down 9,4% and net asset value (NAV) up 22% to 1471,57c per share. The company said, "At the reporting date, the property portfolio was valued at R9,258 billion (2022: R5,084 billion). This growth is predominantly attributable to the inclusion of investment property valued at R3,720 billion owned by Safari RSA Investments Limited ("Safari") which was consolidated into Heriot's results as at 30 June 2023". This share is completely hamstrung by its lack of volume traded, which makes it completely impractical for a private investor.