Despite low economic growth, lower retail sales and high interest rates, Rebosis Property Fund will continue to focus on the retail sector as its biggest source of income and growth.

The company, which reported an 8.2% growth in distributions a share to 119.45c for the year ended August 31, paired with a 10.3% increase in net income growth to R666-million, said it would retain its retail dominance, capitalising on strong development expertise and bedding down new retail acquisitions.

At a presentation of the company's results, in Johannesburg, on Monday, CEO Sisa Ngebulana said the company’s retail centres continued to grow robustly, adding that Rebosis would also focus on optimising its retail tenant mix.

“We don’t just take any tenant that comes aboard, there’s a science to it . . . to deliver a strategy, instead of [just] filling up boxes [for the sake of it],” Ngebulana said.

Meanwhile, Rebosis also saw a 10.6% increase in its distributable earnings to R632-million, while its assets under management expanded by 29.5% to R12.8-billion in the year under review.

The property fund also achieved a 3.1% reduction in vacancies.

Rebosis’s portfolio is broken down into a R3.7-billion retail portfolio, including the Bloed Street and Sunnypark malls; a R4.8-billion office portfolio comprising 15 properties; and a R150-million industrial portfolio.

In terms of Rebosis’s firm intention to to acquire 100% of the issued linked unit capital of JSE-listed Ascension Properties, Ngebulana said the fund was focusing on integrating Ascension’s assets, once the deal was concluded.

This, Ngebulana said, would also be an area where the company would downscale on the office portfolio, noting that whereas Rebosis had “very large properties”, Ascension held several smaller assets that were perfect for disposal.

He highlighted that the Western Cape was one area where Rebosis would look to dispose of these assets, as it would not only receive a higher premium, but the company already had “a lot of suitors” in this region.

Its overall R1.5-billion disposal strategy will not only improve the quality of its portfolio and strengthen its balance sheet to weather further economic headwinds, but it will also reduce gearing and allow the company to extend the duration and hedging on debt falling due for refinancing.

Rebosis expects to achieve distribution growth of between 7% and 9% in the new financial year.