The company said that together with the 4,3c declared for June last year the total distribution of 16,1c represented an annualised return of 11,5%, compared with the prelisting forecast of 12%.

Calulo said that during the period to last June a financial oversight had seen an interest accrual relating to a property portfolio not being brought into account.

It said this had resulted in an overdistribution of 0,75c for the 2005 period after recognising the distributable earnings from a property sale in full in that period.

Calulo said its distributions to June this year were also projected to be below expectations due to a "projected rent reversion" on one property.

The company said leases at Baby City and Sportman's Warehouse had been extended for 10 years at lower rental levels.

Calulo said this had resulted in commission expenses not budgeted for. But it said although it reduced income in the first year, the longer leases would "provide future stability".

Calulo said the total revaluation of the property portfolio for the six months to December had resulted in a R37m increase in value to R419,6m.

The company said the acquisition of 20,9-million shares in Calulo by Matemeku Property Acquisitions 104, a company controlled by businessman Moss Mashishi, had brought the black economic empowerment equity interest in Calulo to just more than 50%.