The listed property unit trust‚ whose real estate investment trust (Reit) status will come into effect in January 2014‚ owns a portfolio of retail‚ industrial and commercial buildings located primarily in SA’s major metropolitans.

The fund said its industrial rental growth of 7.3% was underpinned by positive rental reversions and good tenant retentions of 65.1%.

Meanwhile‚ retail rental income decreased by 15.3%‚ which was attributable to a combination of the effect of disposals in 2012 and 2013‚ and a 1.3% increase in vacancies.

Retail rental income on the standing portfolio improved from 4.7% growth as at June 2012 to 6.2% growth as at June 2013‚ “arising from strong tenant retentions of 87.4% and positive reversions of 0.9%”.

Commercial rental income decreased by 11.7%‚ attributable to a combination of the impact of disposals and a 5.4% increase in vacancies relative to the comparable period.

Property expenses decreased by 4% compared with June 2012 thanks to the effect of the disposals. Property expenses in respect of the standing portfolio increased by 9.4%. The standing portfolio municipal costs‚ which represents 59.7% of property expenses‚ increased by 10.7%‚ due to an increase in electricity‚ rates and water costs.

The fund’s gearing level was low at 14.5%.

The fund expected a similar level of distribution growth to be achieved for the full financial year