September was a bumper month for economic data and listed property updates. Despite all the good news, the J803 index had its first down month in Q3, delivering a -1.00% drop, but the quarter was still positive at 5.45%. While SA property companies reported strong results, firmer balance sheets, and constructive guidance, plus the economy in terms of inflation and ZAR strength is giving all the correct signals, the South African Reserve Bank (SARB) opted for a defensive hold. Creating in our opinion an unnecessary headwind for the domestic economy and property sector. The recent busy results season showed that the sector has weathered the high-rate and low-growth environment well. Key takeaways from the month included: Strong Operations: Distributions are stable or rising, occupancy levels are firm, and management guidance for 2026 has been broadly positive. Defensive Segments Thrive: Logistics and industrial holdings continue to benefit from secular demand (with a few blips), while necessity-based retail has proven its resilience and continues to deliver strong results. Repaired Balance Sheets: Many companies have proactively refinanced debt, extended maturity profiles, and maintained gearing at manageable levels. Looking ahead, the tension between solid property fundamentals and restrictive monetary policy will define the investment landscape. While the sector has proven it can sustain dividends, its valuation and cost of capital remain unnecessarily compressed by the SARB’s stance. An eventual policy pivot seems more likely in Q4, but is contingent on continued inflation moderation and currency stability. Internationally the US Federal Reserve finally moved in September, cutting by 25 basis points. The cut didn’t buoy the US All REIT market which only delivered 0.27% in USD total return terms. Global REITs delivered -1.11% in ZAR terms, again underperformed the J803 index. In September, the global REIT industry marked two pleasing milestones that continued to confirm its maturity as a mainstream asset class. The first was the 65th anniversary of the REIT structure itself, signed into US law in September 1960 to democratise investment in commercial real estate. While the structure existed for decades, the sector’s explosive growth only began in the 1990s with the “Modern REIT Era.” This period was unlocked by financial innovations like the UPREIT structure, which allowed private portfolios to be rolled into listed vehicles with greater tax efficiency, unleashing a wave of scale and specialisation. The result is a global industry of over 1 000 REITs in 42 countries. The second milestone was the 20th anniversary of the FTSE EPRA Nareit Global Real Estate Index family, the definitive benchmark for the asset class. Formalised in 2005, these indices now cover nearly $300 billion in assets and underpin a vast range of investment products, including South African REITs. Recent innovations, such as the inclusion of datacentres and telecom towers, show the benchmark is adapting alongside the definition of real estate itself. Together, the 65-year-old structure and its 20-year-old global benchmark signal an asset class that is fully integrated into global capital markets, and remains an ongoing premier choice for investors.