Because the fund listed only in November 2003 the results cannot be compared with the interim period to December 2003.

The fund, which has a market capitalisation of R1,94bn and total property assets of R1,95bn, announced a distribution of 32,63c.

CEO James Templeton attributed the positive results to, among other things, a number of acquisitions that the fund made in the first half of last year.

Templeton also said that when Emira was listed not all of its properties had been transferred to the fund.

These properties were transferred on varying dates from November 2003 to June last year.

He said the transfer delays were due to delays on the part of the City of Johannesburg in providing the fund with rates-clearance certificates.

"Because these funds were not owned by the fund for the six months to June, by the same token we were not receiving income," said Templeton.

He said the period to December was the first six-month period in which the full income from these properties was reflected.

At present office properties make up 50% of Emira’s property portfolio, while retail and industrial properties comprise 34% and 16% respectively.

Templeton said the company intended building up a diversified portfolio, and was seeking more retail properties.

But he said retail properties were hard to come by, and "very expensive", which was why the fund was weighted predominantly towards office properties.

Templeton was relatively upbeat about the office property market, saying it would "pick up" in Johannesburg but not at the rate that had been expected.

He said the office market was "strong" in the rest of the country.

Emira’s property portfolio is located mainly in Gauteng.

The fund managed to reduce its vacancies from 6,1% to 5,7%. Templeton said this was due to a strong retail property market where there was demand for space and a rapidly improving industrial property market.

Emira said distributions growth in the coming six months was going to be driven by organic growth from the existing property portfolio, cost savings and yield-enhancing acquisitions.