Though property is unlikely to shoot the lights out in 2012, a total return in the region of 10%-15% is widely expected. Like last year, the FM believes the Resilient group’s hybrid speculative play, Fortress Income Fund (B units), will again lead the pack.

At a historical income yield of around 3% versus the sector’s 8%, the counter isn’t cheap. And many may rightfully argue that the rally in Fortress B’s share price is not sustainable — the stock was up a whopping 103% from January to November 2011. But Fortress is expected to continue to grow its income at a quicker rate than any of the sector’s other 20-odd counters, which should create more share price upside.

Management recently indicated that the fund is on track to deliver overall income growth of 10% for the year to June 2012. That means B shareholders’ income payouts will swell by a hefty 50% this year. The growth average for the sector is 5%.

Fortress focuses on commuter malls near taxi ranks in platteland areas like Nelspruit, Secunda and Empangeni. Most cater to low-income shoppers. It also has stakes in sister funds Capital Property Fund, Resilient Property Income Fund and Romanian-focused New Europe Property Investments.