MD Des de Beer said on Friday that the increase was due largely to the refurbishment of a number of Resilient's retail properties.

"As a result we have achieved increased rentals in all (of our) refurbished centres," said De Beer.

Resilient focuses largely on "dominant retail properties" in small cities and large towns in SA.

"The retail sector remains buoyant and turnover rentals have again exceeded expectations," said De Beer.

He said Resilient's property portfolio was "heavily exposed" to Limpopo, the province with the second-highest growth in gross domestic product terms, while minerals, tourism and agriculture were some of the factors driving Limpopo's economy.

Distribution growth for the full financial year, compared with the previous year, was expected to be more than 12%, he said. Resilient's board approved an interim distribution of 47,94c a linked unit for the six months to June.

Resilient, which has a small exposure to industrial properties relative to its retail portfolio, is benefiting from a strong industrial market. "Demand for industrial space in Gauteng currently exceeds supply, with resulting upward pressure on rentals," it said.

"Higher rental levels have in turn encouraged new development, particularly of large warehousing and distribution facilities."

Mariette Warner, head of property funds at Stanlib Asset Management, said Resilient's successful refurbishment programme was benefiting the fund by generating a much stronger cash flow in a "very buoyant retail environment".

Warner expected an average distributions increase of 7% for the listed property sector this year.

De Beer said Resilient had increased its interest in fellow listed property loan stock company Acucap to 19,5%.

There has been speculation previously of a possible Resilient-Acucap merger because the two companies enjoy a close relationship and share directors.

However, a merger between the two companies in the near future is not likely.

De Beer said: "We haven't excluded a merger between the two companies, which share common directors and a common ethos, but there is no compelling reason to merge at this point."

Resilient and Acucap have different focuses: Acucap's is on major metropolitan retail centres and on having exposure to offices and industrial properties.

Resilient, during the period under review, acquired the retail centre, the Murchison Mall, in Ladysmith, KwaZulu-Natal.

The company said the property was acquired for R42,6m payable in cash and at a forward yield of 11,5%.