Atlas Properties MD Ian Raubenheimer said the growing economy was playing a big role in increasing office market demand.

This could be seen in Atlas Properties' building vacancies falling from 6,7% to 3,9% of lettable space. Building vacancies as a percentage of gross rental income now stand at 1,7% compared with 4,1% a year ago.

Atlas Properties said the reduction in vacancies should have a positive effect on earnings during the second six months of its financial year.

Raubenheimer said he expected the increase in economic activity to continue supporting the property sector for some time to come.

The improving conditions in the office market could be seen in office rentals now rising after being in a slump for years, he said.

The rise in its distribution was in line with the company's record of increased earnings over the past 11 years, and total returns to unitholders, comprising income distributions and capital growth, have shown compound growth of more than 21% a year.

Dividend and interest payments will be made to unitholders on June 27.

No dematerialisation or rematerialisation of linked unit certificates may take place between June 20 and June 24.