The distribution has risen 5,7% to 65,9c a linked unit for the yearended March 31 2004 from 62,35 the same period last year.

South African Retail Properties MD Peter Sparks attributed the positive results to the buoyant retail property sector and the turnovergenerated from major national retailers.

Colin Young, who is the fund manager of Old Mutual SA Quoted PropertyFund, said South African Retail's latest results were "pleasing" and reflectedthe underlying strength of the retail sector.

Young said South African Retail's management had also "done a good job"in reducing the vacancies in the property portfolio. The company reporteda vacancy factor of 4,6%, a substantial reduction from the 6,2% recordedlast year.

South African Retail said that during the year under review it had boughtthree shopping centres for a total of R160,5m.

The Westwood Village centre in Boksburg was bought for R14,6m at aninitial yield of 14%, and Town Square in Constantia Kloof, Johannesburg,was bought for R49,7m at an 11,5% yield.

The company said it had the resources to continue building its portfoliobut was "mindful of the impact on earnings of new acquisitions".