"Although this is slightly lower than the year-end distribution, it is the fund's policy to pay a conservative distribution in the first three quarters and to top up in the final quarter," said Paraprop managing director Rodney Squire-Howe. "The results also indicate that the fund was tightly managed, with a vacancy ratio of 3.5%, which was excellent in the current market." Squire-Howe said he was well satisfied with the fund's performance. "We anticipated a modest growth in distributions for the year and we are comfortable that the fund is on track and prospects are good. We are particularly pleased that there has been no negative growth in distributions due to the conversion of B-debentures." He noted that the fund's strategy was to continue to grow the portfolio to increase market capitalisation.