SA Corp Real Estate Fund declares interim distribution of 17.68c per unit

SA Corporate Real Estate Fund (SAC) has declared an interim distribution of 17.68c per unit‚ up 8.6% from the year-earlier period‚ the company announced on Tuesday.

Compared with the previous interim period distribution grew 7.3%.

The group said the distribution for the six months to June 2013 included a one-off lapsed distribution of R8.8m arising from the repurchase of 58‚896‚063 units. Net property income in respect of the standing portfolio grew by 10.0%.

The premium to net asset value increased to 11.1% at June 2014‚ compared with a premium of 8.4% at December 2013.

Industrial rental growth of 11.3% was underpinned by strong tenant retentions of 92.8%‚ solid weighted average lease escalations of 8.1% and acquisitions. Total retail rental income increased by 8.6% due to positive reversions‚ reduced vacancies‚ solid retentions‚ improved turnover‚ rental collection and weighted average escalations of 8.0%.

Property expenses increased by 6.6% compared with June 2013‚ mainly due to acquisitions‚ with the standing portfolio expenses accounting for 93.3% of total property expenses‚ increasing by 3.6%.

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