Property group Hyprop on Tuesday reported an 18.2% increase to 130 cents in distribution per combined unit for the six months ended June.

The group's shopping centres contributed 11.7% to the growth in distribution, with the balance achieved mainly from interest earned as a result of the disposal of the group's investment in SA Retail Properties.

Revenue fell from 365.6 million rand to 326.3 million rand and operating income was down from 252.7 million rand to 213.2 million rand.

An 800 million rand increase in the property revaluation surplus contributed to an 11% increase in net asset value per combined unit to 34.76 rand. Excluding deferred taxation, the net asset value per combined unit of 44.58 rand is marginally higher than the closing combined unit price on the JSE of 43.85 rand at June 30, 2007.

During the period under review the company bought 4.6 million linked units in Resilient Property Income Fund for 24.40 rand per linked unit as part of its strategy to invest in listed property securities with retail focus.

The company also sold a portion of Morningview Office Park for 40.4 million rand. Sale of the remainder of the Morningview Office Park is under negotiation.

Developments currently under way include the 544 million rand development of Stoneridge Shopping Centre in Modderfontein, the 32.4 million rand development of Canal Walk Shopping Centre and the 5.7 million rand conversion of unused cinema theatres into Sportsmans Warehouse.