Johannesburg — WHILE retail spending has come under pressure due to rising interest rates, development in resource mining helped retail-focused property group Resilient Property Income Fund grow its interim distributions to June.

The group yesterday reported a 16,95% surge in distributions to 29,49c per linked unit for the six months compared to the same period last year.

It said the negative macroeconomic environment was countered by "rapid development and growth in resource mining", which was the economic focus of most of the areas in which Resilient's developments were situated.

Resilient MD Des de Beer said the growth in distributions was driven by "pure rental income" from the company's property portfolio. Resilient does not distribute capital profit or profit from shares or property sales.

De Beer said the company was also receiving "decent increases" on renewal of leases. "With the surge in the resources sector we're benefiting in shopping centres based in towns with that focus," he said.

De Beer said that as an example, its new Highveld Mall in Witbank was benefiting from the expansion of coal mines there. "More people get employed and they spend more in the centres, which improves trading conditions for retailers."

De Beer said national retailers dominated Resilient's shopping centres , which provided a buffer in more difficult economic times.

"We've avoided exposure to convenience retail, which has been severely affected by the high interest rates and general economic woes," he said.

Resilient said the highlight of the reporting period was the acquisition of sister property loan stock company Diversified Property Fund. The company intended to sell Diversified's smaller retail assets, and four industrial properties acquired as part of the merger.

These industrial properties , particularly City Deep Industrial Park, were "under-rented and will only be sold once the full value can be realised". De Beer said the company's vacancy factor was low, at 1,9%.

Resilient, which has a market capitalisation of R4,9bn and total assets of R5,9bn, also holds a 9% interest in Pangbourne Properties, which is valued at R522m.