The company said on Thursday that contractual rental income for the review period comprised 95% of total revenue and income from listed securities comprised 5%‚ while trading and fee income were no longer a feature.

Net operating income rose to R1.727bn from 1.294bn a year ago. The property fund said a challenging trading environment‚ disproportionate increases in utility costs and continued financial market volatility were expected to continue.

"Notwithstanding these factors‚ Redefine is well focused on managing the variables within its control. Accordingly‚ Redefine anticipates growth in distributable income per linked unit for the second half of 2014 at a rate similar to that achieved in the current period."

The forecast was predicated on the assumption that the current trading conditions would prevail. Forecast rental income was based on contractual terms and expected market-related renewals, Redefine said it was still in talks with Fountainhead about acquiring Fountainhead.