RESILIENT Property Income Fund posted a sterling set of results for the six months ended June yesterday, and said its main focus was on extending and redeveloping its shopping malls.

CEO Des de Beer said the company, which reported a 10.4% increase in distributions to 120.74c per linked unit, was not buying land for new developments due to low returns.

"We have R1.4bn committed on extensions and redevelopment, which is in line with our business model because the risk returns on new developments are not good at the moment. Another R740m is for our development pipeline, we still have three new developments to do," Mr de Beer said.

He said the company’s growth was the result of strong performances by both the property portfolio and listed equities, particularly New Europe Property Investments and Fortress B.

Resilient forecast growth in distributions of 10% for the full 2012 financial year. Vacancies improved from 1.9% in December to 1.8% in June.

Meago director Thabo Ramushu said the results were in line with expectations but well above the industry average of 6%-7% distribution growth.

Keillen Ndlovu, head of property funds at Stanlib, said Resilient had again delivered on its promise to investors. "It is quite exceptional to achieve 10.4% in this environment and more so to even forecast 10% growth. The other thing we like is that management own sizeable stakes in the business. Their interests are aligned with investors," Mr Ndlovu said.

mokopanelet@bdfm.co.za