Resilient Property Income Fund on Wednesday announced an interim distribution of 109.36 cents for the six months to June 2011 from 100.60 cents, an 8.71% increase from the prior comparable period.

The fund reported that for the period under review, diluted headline earnings per linked unit increased to 186.52 cents from 117.28 cents a year ago.

Profit for the period increased to R183.3 million from R82.1 million a year ago. Rental revenue moved up to R393.04 millionfrom R268.2 million a year ago.

These results were achieved despite Resilient undertaking a number of transactions which will enhance growth in distributions in the long term but which are earnings dilutionary in the short term.

These included the disposal of Resilient's entire Fortress Income Fund Limited-A holding and increasing its interests in partially owned properties at yields below its cost of funding.

The highlight of the period was the successful opening of the 75,000m2 GLA Mall of the North in which Resilient now has a 60% interest.

Resilient acquired the remaining 50% interest in The Grove for R356.4 million based on a forward yield of 8.25% with effect from June 2011.

The fund has agreed to acquire a 40% interest in a 14.13 ha property in Secunda from Sasol Pension Fund. The property has approved retail rights and the board has approved the development of a 40,000m2 GLA regional mall. The anticipated yield on this development is 9%.

Sasol Pension Fund has retained a 40% interest in the property and the remaining 20% has been acquired by a BEE consortium.

Resilient's focus remains to invest in dominant retail centres situated in non- metropolitan areas with strong anchor tenants and a high percentage of national retailers. Retail sales in non-metropolitan centres were supported by the 14% increase in government's social spending.

Increased mining investment, particularly in coal, platinum and manganese, had a positive economic impact in a number of areas in which Resilient owns centres.

The company noted with confidence in its outlook that growth in distributions of between 8% and 9% would be achieved for the 2011 financial year.

The growth is based on the assumptions that a stable macro-economic environment will prevail, no major corporate failures will occur and that tenants will be able to absorb the recovery of rising utility costs.