Diversified real estate investment trust (REIT) Redefine Properties on Thursday reported a distribution a share of 74.54c for the financial year ended August 31 – an 8.5% increase on the 68.7c a share reported the year before.

The company noted that this growth had been underpinned by a solid performance in its core property portfolio, bolstered by acquisitions made in the previous financial year and a strong contribution from its international operations.

Distributable income for the financial year grew 19.9% to R2.41-million, compared with R2.01-million the year before.

Redefine’s international operations had increased its contribution to overall distributable income, from 15% in the 2013 financial year, to 17.2% in the year under review.

During the year, Redefine’s overall vacancy rate, excluding the properties owned by Fountainhead Properties, increased marginally to 5.5%. Leases covering 570 610 m² were renewed at an average rental increase of 5.4%, while a further 238 203m² was let across the portfolio.

The REIT reported having made further progress in implementing its strategy of diversifying, growing and improving the quality of its core property portfolio, with 26 properties, with a combined gross lettable area (GLA) of 275 095 m², acquired in the year under review. These were bought for R4.6-billion at an intial yield of 8%.

Further, agreements had been concluded for the R3-billion acquisition of properties with a combined GLA of 580 735 m².

In the year under review, Redefine sold ten properties with a GLA of 58 008 m² for R202-million, while agreements had been entered into for the disposal of further properties, with a combined GLA of 65 771 m², for R571-million.

Looking ahead, Redefine expects rising interest rates, disproportionate increases in administered prices and a lacklustre trading environment to pose challenges but also create opportunities in the 2015 financial year.

The REIT was targeting growth of between 7% and 7.5% in distributable income a share for the new financial year.