Nick Wilson

LISTED property loan stock company Resilient Property Income Fund’s distributions for the year to December surged 15,3% to 100,09c a linked unit on the back of a strong performance from its retail property portfolio.

Resilient MD Des de Beer said yesterday that the company’s distributions for the six months to December were 18,3% ahead of the year-earlier period.

De Beer said the distribution growth was due to a "strong performance of the underlying retail shopping centres" and a low interest rate environment.

Resilient’s borrowings fell from 35,3% of total assets in December 2004 to 15,9% of assets during the period of review, giving the company scope for its portfolio expansion plans.

"This strategy of decreasing borrowings was to provide capital for the strong pipeline of new acquisitions," De Beer said.

These included significant stakes in Diamond Pavilion shopping centre in Kimberley, Northern Shopping Centre in Northam, Limpopo, Witbank Mall in Witbank and Jabulani Mall in Soweto.

De Beer said the firm’s directors were optimistic about its prospects for this financial year and were forecasting distribution growth of more than 15%.

Resilient’s net asset value rose 51% from R7,36 a linked unit in December 2004. De Beer said after the sale of mainly industrial properties, Resilient was now a "focused retail property fund".