Real Estate Sector Struggles on the Stock Market
Among the sectors that have failed to restart on the stock market, we find real estate. Despite being among the largest local players, including two public ones, the cumulative market capitalization of the three has lost 9,010 MTND, or 10.2%, compared to the end of 2019. This is no small feat compared to the Tunindex and other financials that have outperformed over the same period.
Simpar has recorded losses of 3,480 MTND, adding to its previous losses of 10,137 MTND. The last dividend distributed dates back to 2017, and shareholders are still waiting for the company to return to positive territory.
Similarly, Essoukna (a subsidiary of Simpar) has posted a loss of 3,180 MTND. However, its situation is significantly better than its parent company, with reported negative results limited to -2,295 MTND. The company last paid dividends in 2020, for the 2019 financial year.
As for SITS, there are no dividends either, but with the major difference that the real estate developer has posted a positive result of 1,035 MTND and has no reported negative results. The period has also seen the entry of a heavyweight into its capital, namely one of PGH's subsidiaries. The last shareholder remuneration dates back to August 2016.
On the market, Essoukna is faring the best, with a return of 16.67% since the beginning of the year. Investors have appreciated the sales of the first quarter of 2025, which totaled 3,065 MTND, including 2,883 MTND of developed land. It outperforms SITS (+8.95%) and Simpar (-4.18%). The market is better assimilating the cyclical nature of the activity and is evaluating the policies put in place to generate revenue. It is mainly taking into account the land reserve of the three, which approaches 49 MTND in acquisition cost. Even if debts are also high, they are largely covered by the market value of the land, which continues to rise. The conviction is that real estate will take its revenge soon.
