The results surprised the market following disappointing results for the year to March, which showed only 3% distribution growth.

MD Peter Sparks said the company had been successfully “proactively managing the underlying portfolio, redeveloping and refurbishing existing properties, acquiring earnings-enhancing investments and building new shopping centres at earnings-enhancing yields”.

He said SA Retail was also in advanced negotiations which would see empowerment groups Kensani Capital and the Wiphold Group acquiring a significant interest in the company.

He said a relationship agreement “covering the obligations of the parties would be signed shortly”.

SA Retail said a circular detailing the effects of the proposed R1bn acquisition of properties from Sharemax Investments would be distributed to unit holders shortly.

Sparks said the company’s vacancy rate was 2,7% on September 30 and that its expense-to-income ratio of 31% “continued to remain favourable”.

Angelique de Rauville, MD of Investec Listed Property Investments, said SA Retail had “definitely exceeded our expectations and surprised us on the upside”.

“SA Retail were coming off a fairly low base but 13% surprised us, reflecting a robust retail market. Perhaps we are starting to see some of the value add from the acquisition by Old Mutual of the Marriott management company,” she said