Corporate Governance
Investments
These governance issues reared their ugly head again in the MAS corporate action this year.
While times are good, analysts, investors and other people in the sector must be careful not to become complacent when critiquing funds and their management teams. Portfolio Manager at Merchant West Investments, Ian Anderson , explains that while there have been improvements in governance and in aligning the goals of management and shareholders, it will take time before
“South African listed property continues to surprise on the upside, with the sector’s year-to-date total return already ahead of expectations,” he said. Concerns But while earnings and dividends are beating inflation and there has been share price growth at many of the property counters listed on the JSE (which will please investors), this does not mean that the listed sector must lose sight of what has deterred its progress in the past i.e. poor governance. The sector has been volatile in the past quarter of a century owing to the 2008- 2009 recession, the Covid-19 pandemic and the market responding to cases where management teams may have enriched themselves to the detriment of their funds.
listed property wins back the support of some investors who left in the wake of 2017-18 share sell-off. “There are still several generalist
Ian Anderson
Avalon Estate, Bucharest in Romania
There are still several generalist fund managers who won’t invest in the sector because of poor governance.
to take control of it when the company he leads, Prime Kapital Investments (PKI), took its stake to 36.32%. When acting with concert parties, Slabbert and PKI own just short of 50% of MAS. This enabled the investors to vote against proposals from minorities at an Extraordinary General Meeting in August. These proposals included bringing new directors onto MAS’ board and removing two directors who
fund managers who won’t invest in the sector because of poor governance, which resulted in steep capital losses from 2017 to 2020, which were obviously exacerbated by Covid,” he says. MAS Plc “These governance issues reared their ugly head again in the MAS corporate action this year. It’s also one of the major reasons why the sector trades at a fairly steep discount to net asset value (NAV), on average,” says Anderson. Between May and September, MAS Plc was at the centre of a takeover battle. The JSE-listed landlord owns mostly retail assets in Romania but has begun to develop residential schemes in recent years. Martin Slabbert , who is a former CEO of the company, managed
were deemed to have conflicts of interest given their relationships with PKI. Then suddenly on Friday October 10, MAS released a statement via the JSE’s Stock Exchange
Martin Slabbert
Trout flyfishing in Dullstroom
October 2025 | Issue 141 | Asset Magazine 271
270 Asset Magazine | Issue 141 | October 2025
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