The listed property sector of the JSE Securities Exchange SA is set for a rerating which should narrow the yield gap between the sector and bonds, says portfolio manager of Coronation Fund Managers, Kirshni Totaram.

Tempers are wearing thin in the JSE Security Exchange's real estate sector, where burgeoning investment funds compete for slim pickings of scrip in 20 property unit trusts (PUTs) and property loan stock companies (PLSs).

Cape Town - Hybrid property loan stock companies were finding more favour among investors despite the fact that they continued to be controversial in the industry, Coronation said yesterday.