This bodes well for the sector this year and it is expected to show its resilience in the face of expected rand and bond market volatility.

The sector's performance tracks the performance of bonds because they are both incomegenerating investments.

However, Anton de Goede, who compiled Catalyst Securities' latest monthly overview of the listed property sector with fellow investment analyst Andre Stadler, said despite the lacklustre general equity and capital markets, the sector would show resilience because of distribution growth.

He said the distribution growth was due to improved property fundamentals in the sector and the effect of the lower interest rate environment.

Catalyst Securities' study showed that the general equity market delivered a return of 0,48% for last month, while bond yields strengthened 0,53%.

De Goede said that if there had been another interest rate cut it would have been positive for the sector as the interest costs on long-term funding would have decreased.

Many listed property counters reported financial results last month and the results of individual companies also influenced the performance.

The property loan stock sector delivered returns of 2,56% for last month, while property unit trusts have delivered returns of 0,18%.

Mariette Warner, head of fund management at Standard Bank Properties and manager of the Standard Bank Property Income Fund, said the sector would hold its own against long bonds because of the earnings growth. Catalyst Securities said property loan stock firm Hyprop Investments, which delivered returns of 10,80%, was the best performer.