JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.

Speaking at a results presentation earlier this month, Rebosis CEO SisaNgebulana said the results were above expectation.

During the year, the REIT had increased its assets under management to R7.6-billion, owing to the acquisition of development and management specialists Nthwese Developments’ portfolio and Ascension Properties Management Company (Manco), as well as the acquisition of 32.1% in Ascension Properties’ linked units.

Ngebulana noted that the acquisitions of the Ascension Properties linked units, as well as the acquisition of Ascension Properties Manco had diversified Rebosis’ overall investment portfolio.

He added that, although the fund’s focus would predominantly remain on growing a quality retail portfolio, it would acquire assets if and when it made sense in terms of the investment criteria set by the board.

Further, since the Ascension Properties Manco takeover, Rebosis had successfully managed the assets and significantly reduced vacancies.

Rebosis’s net property income also showed solid growth of 37.2% to R559-million, owing to acquisitions and the REIT’s cost to income ratio was steady at 13.7%.

“We are excited to have exceeded our growth objectives in challenging circumstances. We grew the portfolio by R2.3-billion without raising equity, owing to strategic headroom that was created in the previous year that resulted in low gearing.

Rebosis’s portfolio comprised 19 properties – four retail, 14 office and one industrial – with a total gross lettable area of 415 048 m2.

The retail portfolio included four shopping malls supported by strong anchor and national tenants, delivering secure income streams escalating at an average 7.5%.

The expansion and tenant mix optimisation programme at Hemingways Mall, in the Eastern Cape, the largest centre in the portfolio, was completed in July.

As the Eastern Cape’s only current super regional mall, Ngebulana stated that Hemingways Mall was positioned for exceptional growth. The mall reported turnover growth of 8.8% for the year under review.

Rebosis’s office portfolio comprised 14 buildings, which were located in nodes attractive to government tenants.

These are mainly single-tenanted buildings let to the Department of Public Works under long leases providing at average escalations of 8.4%.

The office portfolio represented a sovereign underpin to a substantial portion of the earnings, which shielded it from private-sector risks, such as tenant insolvency and default.

“Our government exposure is well managed with mainly single- tenanted, long-term leases in place. There is some confusion around the National Treasury’s direc- tive, but we continue to negotiate new leases at an average 7% escalation over five years owing to our empowerment status,” said Ngebulana.