South Africa’s real estate investment trust (SA REIT) sector is heading for a re-rating; the question is whether the sector will rally this year or next?

The weeks-long relentless heat wave hitting South Africa provides a direct contrast to what is happening to the rand: a tsunami.

Fortress Income Fund is no longer planning to spin off Capital Property Fund’s office portfolio into a separate listing.

Rebosis Property Fund continues the property sector's better than expected earnings streak.

Black-controlled Rebosis Property Fund and Delta Property Fund have put their respective take-over bids for Ascension Properties on hold to avert a protracted bidding war for Ascension's lucrative R3.2bn portfolio of government-tenanted offices.

The drive to revamp existing malls and open new ones in SA will continue in 2014, potentially leaving listed property stocks overexposed to retail.

The bad news for shareholders of Hospitality Property Fund, last week it announced plans for a rights issue to help refinance a R1,35bn debt facility with Absa that expires this month.

Last year more money about R4,5bn was invested into real estate funds, than into equity R4bn unit trusts, there are now 22 real estate funds for just 19 shares in the sector.

Property stock prices have had an overdue shake-out this year, falling 10% since January in their biggest setback since 2008. It’s a shake-out that could present a buying opportunity with the potential of solid future returns.