Contractual revenue rose to R288.022 million from R267.4 million previously. Loss for the period widened to R58.7 million from R20.7 million a year ago.
The fund said economic conditions were generally weak over the reporting period, although the third quarter saw distinct signs of improvement, with retail sales in particular showing a satisfactory recovery from June through to the September reporting date.
Retail inflation peaked at 12.7% in November 2008, but has now receded to just 0.66%.
With further help from a strong rand and thus cheaper imports, the resulting lower prices have stimulated improved sales.
Consumers may also have been encouraged by further reductions in borrowing costs over the period, with the expectation of more to come, the fund said.
Tenant revenue across all Acucap's retail assets grew by 8.69% in nominal terms for the period under review compared to the same period last year.
The performance of the office market however remained subdued, with vacancies in the Acucap office portfolio increasing from 4% to 4.4%, although subsequent to 30 September, new leases have been concluded, resulting in the vacancy rate declining to 2.7%.
There was no significant leasing activity in either of Acucap's industrial joint ventures, although infrastructural development of both the N1 and Montague Business Parks continued throughout the period.
Acucap said it has benefited from the good performance of its retail portfolio while it was shielded from the worst effects of the office downturn by its long lease expiry profile in that segment.
Looking ahead, the SA economy looks set to grow by between 3% and 3.5% over the next year, and while this is encouraging, there are still risks to the recovery, in particular the low rate of job creation.
Until labour market imbalances are addressed, the SA economy is unlikely to achieve its full growth potential,' the fund said.
It said office and retail rentals remain under pressure, while operating costs have escalated significantly, electricity at an annualized 28.1% and rates at 17% within the Acucap portfolio.
Under these conditions, the board expects the distribution growth for the full year to be slightly lower than the 6.25% achieved at the interim date.
