RETAIL-focused property loan stock company Hyprop Investments on Thursday reported a 7.6% rise in total distributions to 213c per combined unit for the six months ended June.

The company received its first dividend from its 37.5% shareholding in Atterbury Africa, which focuses on shopping-centre investments in the rest of Africa.

Hyprop changed its year-end to June 30 to facilitate its conversion from July 1 to a real estate investment trust (Reit).

"In due course Hyprop will implement a capital restructure to simplify its capital structure and ensure compliance with legislation," the company said.

"Taking into account the short-term dilution due to the Rosebank Mall redevelopment, Hyprop expects to show distribution growth of 6.5%-8.5% for the year ending June 2014."

Construction work on the Rosebank Mall redevelopment in Johannesburg "is progressing well", it said, with the completion of the basement parking and the Bath Avenue entrance.

The first newly built shops are expected to open in the last quarter of this year. Final completion is scheduled for September 2014.

The total capital cost, including a further extension to the Bath Avenue bridge, is R932m with an anticipated yield of 7%.

Hyprop said its acquisition of 100% of Somerset Mall from Sycom remained subject to the transfer of a 50% undivided share in the mall from AECI pension fund to Sycom. "This is anticipated to occur in the next few months." The transaction is valued at R2.3bn.

The company’s total vacancies increased slightly, to 2.7% from 2.5%.