Listed property unit trust SA Corporate Real Estate Fund reported 4.6% distribution growth for the full year ended December on Friday‚ with full year distribution of 30.15c per unit. MD Rory Mackey said results included an "extraordinary" provision of R5.9m pending the finalisation of a VAT attribution ruling from the South African Revenue Service‚ relating to the period 2007 to 2012‚ which had a material effect on the results.

Mr Mackey said SA Corporate believed it would continue to improve on its distribution growth "on a gradual trend"‚ and management now had a "very focused approach" in terms of its strategy. "Hopefully what is starting to come through is that we are executing on our strategy and that we are very committed to executing on it‚ whereas I think there's always been some doubt from the market as to whether we would be able to‚" he said.

The fund's investment strategy meant it was "now well placed for growth". It intended to acquire quality properties‚ and would focus on its strength which was its industrial portfolio‚ although there was limited stock available meaning the fund did not "want to be constrained by an unrealistic preference" and it would look for a broader mix of assets‚ Mr Mackey said.

SA Corporate was also focusing on obtaining high quality property management services‚ and a request for proposal for these services was to be issued shortly. The fund's "optimal capital structure" strategy included an appropriate level of gearing as well as well-priced debt and a managed interest rate policy.

Gearing at the end of the period remained low with debt amounting to 14% of the total portfolio. Financial director Antoinette Basson said besides the VAT provision‚ SA Corporate would have reported "a good result". Also announced on Friday‚ the group said SA Corporate Fund Managers had entered into exclusive discussions with Old Mutual Property regarding the possible internalisation of the fund's management.

Mr Mackey said the market viewed the current structure "as a degree of misalignment between management and unitholders"‚ and unitholders had expressed this as an issue.

The fund's portfolio comprised 139 properties at the end of the period‚ made up largely by industrial and retail properties.