Property loan stock group Hyprop Investments on Wednesday reported an 8.1% rise in distribution per combined unit to 174 cents for the six months ended June 2010 compared with 161 cents a year earlier.

Headline earnings per combined unit were 241 cents compared with 54.8 cents a year earlier.

Operating income rose to R344.4 million compared with R296.9 million reported a year ago.

Revenue was up 19% to R527.8 million, while distributable earnings from shopping centres increased by 17%.

On a like-for-like basis, excluding additional retail at The Glen and Canal Walk, revenue from shopping centres increased by 12%, while distributable earnings increased 9%.

Shopping centre income was negatively affected by increased municipal rates and electricity during the period, which was not fully recoverable from tenants.

Provisions for doubtful debts were increased by 40% to R5.3 million, bringing total provisions for doubtful debts to 61% of total arrears.

Revenue and distributable earnings from offices increased due to the inclusion of Cradock Heights and Rosebank Gardens in the current period.

Income from hotels includes The Grace and Southern Sun Hyde Park.

Other operating expenses reduced by 22% to R5.1 million primarily due to the replacement of asset management fees with lower consulting fees, both payable to Redefine Properties.

Investment property increased in value by 2.2% to R9 billion.

Vacancies at end June 2010 reduced to 3.9% from 4.5% at end December 2009.

Excluding Stoneridge, which opened in September 2008, total vacancies were 1.3% versus 1.9% in 2009.

Income from Hyprop's investment in Sycom Property Fund increased by 2%.

This relatively low increase was due to a downward revision of forecast Sycom income for the three months ended June 2010 as well as an under accrual of Sycom income in 2008 which boosted 2009 income.

The investment in Sycom was valued at R1.6 billion at end June 2010 based on the closing price on that date of R20.90 per unit, resulting in a write-up for the period of R121 million.

The net asset value (NAV) per combined unit was R45.79, representing a 3% increase on the NAV of R44.29 at end December 2009, it said.

Looking ahead, Hyprop said savings in the second half of 2010 from the elimination of consultancy fees to Redefine are likely to be offset by increases and back charges in respect of municipal rates and electricity costs, increased provisions for doubtful debts and lower than budgeted occupancies at Southern Sun Hyde Park.

The board anticipates that, barring a change in market conditions, Hyprop's distribution for the six months ending December 2010 will be between 181 cents and 185 cents per combined unit.

The forecast distribution for the full year therefore remains unchanged at 355 cents to 359 cents per combined unit.

Hyprop owns regional and super-regional shopping centres across .