Listed property loan stock company iFour Properties says that the acquisition of six more retail properties in township or rural areas stands it in good stead to take advantage of the growth in the economy.

iFour CEO James Nunes said yesterday that the shopping centres were "brand new" and in "previously under shopped areas".

"These shopping centres dominate their catchment areas and in excess of 70% of tenants are national retailers," said Nunes.

But in annual results released yesterday, iFour delivered a below-average distribution increase of 5,1%. Nunes said because the company had an even split between retail, office and industrial properties — roughly a third of each — in its property portfolio, it was not as susceptible to property cycles.

For instance, retail-dominated property funds such as Hyprop Investments have done well in a booming retail environment.

"It reduces our exposure to the downside in any of those sectors," said Nunes.

Catalyst Securities MD Andre Stadler said there were some "non-sustainable forms of income", which was "cause for concern".

He said "other income" items in the results included R6,7m, which consists mainly of transaction fees paid by sister company Pangbourne "in respect of asset management on a property acquisition".

He said the distribution growth was below average for the sector. "Most companies are coming out with between 8% and 12% distribution growth," said Stadler.

Nunes said iFour’s unit price had performed well since its listing in June 2002. The company listed at R5 a unit and the unit price had increased almost 100% to R9,60.