PROPERTY equity unit trusts, which invest in the listed property sector on behalf of clients, are providing an attractive income yield for investors with the prospect of additional growth acting as a sweetener.

The asset allocation flexible property unit trust category, which contains such property vehicles, recorded an impressive average total return of 34,8% last year, statistics from performance monitor MoneyMate show.

Catalyst Securities MD Andre Stadler said the total returns, which include unit price movement and income reinvested in the unit trusts, were indicative of the strong performance of listed property over the past 12 months on the back of low interest rates and improved property fundamentals.

M Cubed Property Equity Fund, which is managed by Catalyst Securities, was the top performer in the asset allocation flexible property unit trust category, recording a total return of 39,82% last year.

The Old Mutual SA quoted property unit trust was second with a return of 38,5%, and the Stanlib Property Income Fund third with 36,7%.

The performance of mCubed Property Equity Fund was measured against nine other funds over the past 12 months.

Stadler said Catalyst was expecting income growth of about 5%- 6% from the listed property sector as a whole this year.