The listed property loan stock company, which has a market capitalisation of R2,3bn and a total asset base of about R4bn, reported that its distributions increased to 36,8c a linked unit, while its net asset value for each linked unit increased 60% to R4,43.

Redefine CEO Brian Azizollahoff has attributed the positive performance to a combination of factors, including the fact that revenue from the fixed-property portfolio was up due to the acquisition of a number of properties.

Contractual rental income increased to R262,7m from R238,9m last year.

Azizollahoff said expenses were "well-contained".

He said Redefine's cost of borrowings had also declined.

Azizollahoff also said the company had sold off many of its interests in other listed property stocks and that the proceeds were used to reduce borrowings from 52,35% of total value to 39,48%.

He said Redefine was "definitely on the trail" of fixed property assets to acquire. But he said the company would also look to buy listed property stocks if it found value in them.

In May last year, Redefine said it had embarked on a strategy to reduce its holdings in listed property stocks, which traded at a premium to net asset value. Redefine said it would invest the proceeds in higher-yielding fixed properties.

Redefine was the first listed property company to advocate a combination of investing in other listed property stocks and fixed property when it listed in February 2000. This type of investment vehicle is known as a "hybrid".

The company said it was expecting distributions for the 2006 financial year to increase at least 10% compared with this year.

Redefine also said it was one of the most liquid counters in the listed property sector, with 56% of its total linked units traded during the year under review.

The company has also been a key player in listed property loan stock company Hyprop's takeover bid for rival loan stock SA Retail Properties.

The group has supported Hyprop's takeover bid and undertaken to offload its 25% interest in SA Retail to Hyprop.

Redefine has strong links with Hyprop because the Madison group has an interest in the management company of Hyprop.

Redefine also approved an interest distribution of 10,3c a linked unit for the quarter ended August.

Interest distributions totalling 26,5c a linked unit were made for the three quarters ended May.

Redefine's property portfolio was also revalued by independent external valuers, and the portfolio's value increased by R745m over the course of the year.