Redefine Income Fund, the property company, on Wednesday declared a distribution of 12.6 cents per linked unit for the three months to 31 May 2007, representing an increase of 18.87% over the 10.6 cents paid in the third quarter of 2006.

Total distributions for the nine months to 31 May 2007 are 36.6 cents per linked unit, an increase of 16.19% from the 31.5 cents per linked unit paid in the comparable period in 2006.

Redefine CEO Brian Azizollahoff explains that this positive distribution growth can be attributed to the strong performance from the company's core property portfolio, larger than expected distributions from its listed securities portfolio and the effects of Redefine's acquisition of Spearhead Property Group flowing through.

"The sector is experiencing the effects of the demand for space as a result of a buoyant economy, much firmer rentals for industrial and office space, a shortage of prime property and a dearth of zoned land suitable for development.  Many economists and property experts have been alluding to the fact that property fundamentals are positive and are driving distributions to unprecedented levels.  In this environment, Redefine benefits from both its direct portfolio as well as its listed securities portfolio," says Azizollahoff.

Income from the core property portfolio excluding properties acquired through the acquisition of Spearhead grew by an impressive 9.25% against the comparable period in 2006. 

Successful leasing reduced the vacancy level of Redefine's total property portfolio from 5.6% at the beginning of the quarter to 2.8% at the close of the three months, with new leases over some 37,000m2 concluded.

Furthermore Redefine's lease expiry profile has again improved with 59.3% of leases expiring in 2010 and beyond.