JSE-listed property loan stock company Redefine Income Fund has reported that its interim distribution increased 12.9% from the comparable interim period in 2007.

Redefine reported a distribution of 13.8 cents per linked unit for the quarter ended February 29 2008 which, together with the distribution of 13.3 cents per linked unit for the quarter ended November 30 2007, results in interest distributions for the six months ended February 29 2008 of 27.1 cents per linked unit (24.0 cents per linked unit for six months to February 28 2007).

Redefine Income Fund chief executive Brian Azizollahoff explained that the letting of vacant space, renewals of expiring leases at increased rentals, completion of new developments and income growth from the listed securities portfolio had collectively contributed to distribution growth, and would continue to do so for the balance of the financial year.

"Redefine's distributions per linked unit for the year ending August 31 2008 will increase by between 12% and 14% compared to 2007, assuming that there is no further deterioration in market conditions" said Azizollahoff.

Azizollahoff said the growth outlook for Redefine might not be at the same levels as in recent years, nevertheless growth was continuing, albeit more tempered, as a result of highly proactive management.

At the close of its interim period, Redefine reported a net asset value (NAV) of R7.56 per linked unit, total assets of R10.2 billion, market capitalisation of R6.4 billion and lower gearing at a conservative 32%, reduced from 34% at the end of August 2007.

Redefine's property portfolio, comprising 97 properties with a total gross lettable area of 827,748m², was valued at R5.0 billion. The property portfolio constitutes 50.2% (August 2007: 50.5%) of Redefine's total non-current assets.

Redefine is currently trading under cautionary in relation to a potential merger with ApexHi Properties Ltd, Hyprop Investments Ltd and Madison Property Fund Managers Ltd.