Sycom, a collective investment scheme in property, said that together with “a 3,4% growth in the value of the property portfolio” the results demonstrated “how good quality South African retail assets have held up in the current economic climate, relative to many other property markets in both developed and emerging economies”.

Sycom’s total distribution for the year amounted to 307,3c, compared with 276,7c last year.

Sycom has a relatively even split between retail and office property assets, with offices making up about 45% of the portfolio.

Sycom CEO Paul Theodosiou said on Friday the results were ahead of “market consensus”.

Theodosiou said the fund’s portfolio of quality regional retail assets offered a “mix of both defensiveness and good growth”.

He said the fund’s debtors’ book had also been “cleaned up”.

Since September last year, Acucap Properties, which owns 50% of Sycom’s management company, has been managing the fund. Theodosiou is also MD of Acucap.

Sycom also has exposure to an overseas asset through Stenham European Shopping Centre Fund.

The fund, in which Sycom holds a 22,509% interest, owns the Nova Eventis shopping centre situated in Leipzig, Germany.

The 96000m² shopping centre is valued at à351,3m and is one of the largest shopping malls in Europe.

Theodosiou said the European fund had “produced reasonably static results”.

“The market value of the fund has held up strongly in the European context but underlying incomes haven’t shown much growth,” he said.

Theodosiou said Sycom’s prospects for the year ahead will be “influenced by letting activity in the office market”.

In results commentary, Sycom said its strategy “remains one of delivering consistent real growth in distributions”.

It said that while there was no doubt there were still significant challenges ahead for property managers in SA, the board was of the view that this could be achieved in the year ahead, provided there was no unexpected deterioration in the economic climate.