Liberty Properties, which only releases performance figures in January each year once the independent valuations are completed, said on Thursday that the Liberty balanced Property Portfolio is on track to deliver another solid real return performance.

"Considering the current inflationary environment, we anticipate pleasing real returns particularly taken in the context of a tough economy," says Sean Segar, Chief Investment Officer at Liberty Properties.

"Listed property shares are pricing in a good recovery and are up almost 30% over last 12 months. So although the horizon remains fragile, we believe we are through the worst of it."

The World Cup provided a positive boost which was welcome on the retail and hospitality front.

Segar comments: "Our Sandton City and Nelson Mandela Square complex particularly saw a strong upswing during the period with some restaurants in the vicinity reporting turnovers up as much as 300%."

"This serves as confirmation to us what a strategic node Sandton is and one we are happy to dominate.

"It proves we are spot on with our current R1.7 billion strategy of refurbishment and expansion at Sandton City, heading for completion in November 2011.

"Liberty Properties is investigating additional investment in the area."

While the World Cup provided a happy boost for many, it seems location had everything to do with it.

Segar confirms this: "Hotels in the right places did well, as did restaurants and sports related traders but there was disappointment in nodes unaffected by the hype.

"What the future months hold is any one's guess.

"Hotel operator's future bookings are not giving a clear picture of what we can expect.

"The soccer spectacle certainly provided a welcome lift in what remains a difficult market in 2010."

Despite this Segar says Liberty Properties believes in the hospitality segment and will continue to build on its exposure. With two new hotels in its fold (Liberty Midlands Stay Easy Hotel and Umhlanga Garden Court), Liberty's tally now totals 13.

"This provides a good diversifier for the Liberty Balanced Property Portfolio.

"With more stock of hotel rooms available post World Cup as well as scaled down travel plans as a result of cost pressure, the market just needs time to digest this."

The company is also actively looking at investing in the industrial sector, says Segar.

"Our key portfolio objective remains to deliver risk-adjusted, inflation-beating returns for our investors.

"Whilst other asset classes are experiencing a dip, demand for high quality, property-backed investments continues.

"Property as an asset class is always popular and historically our fund has a reputation for consistently strong real returns."