Rental revenue for the year was 446.7 million rand from 425.9 million a year ago. Profit before income tax came in at 479.4 million rand.

The group declared a distribution of 82.2 cents per unit (cpu). Together with the interim distribution of 77.14 cpu, this amounts to 159.34 cpu, a growth rate of 6.32% over the previous financial year.

The company said its results for the second half of the financial year were adversely affected by an office vacancy rate of around 10% that persisted throughout the six-month period ended 31 March 2010, principally at the Woodlands Office Park, Riverwoods Office Park and Georgian Crescent, the group said.

The prevailing weakness in the economic climate also saw a 2 million increase in impairments to debtors balances, as provisions and bad debt expenses increased from 0.75% to 1.13% of contractual revenue.

The results were also negatively affected by a 20% decline in the contribution from Sycom's investment in Germany through the Stenham European Shopping Centre Fund (SESCF) in the face of a 3% lower euro distribution from SESCF, combined with sustained euro weakness.

Sycom's retail portfolio traded well in the year under review, with tenants recording a growth in turnover of 6.13% in nominal terms.

The strongest performance was from Vaal Mall, which showed a robust 10.0% increase in reported turnover.

Somerset Mall's annual turnover growth was a more modest 3.6%, although this mature and well-established asset delivered stronger growth in the last quarter of the year, with turnover up by 7.2% as some key tenant remixing decisions have started to show results.

Paarl Mall at 7.8%, Fourways Crossing at 5.5% and N1 City at 4.6% turnover growth, in nominal terms, have all produced commendable results for the year and have amply illustrated the defensive qualities of Sycom's major retail assets.

Looking ahead, the group said good defensive qualities of Sycom's retail portfolio have been evident throughout the last financial year.

The pleasing turnover growth rates achieved and the stable occupancy levels point to a definite recovery in consumer spending, although the board expects this recovery to be gradual.

The office sector remains challenging, and Sycom will once again have to contend with a high level of lease expiries in the 2011 financial year.