Synergy improves H1 distribution slightly

For six months to December 2014, distribution rose to 44.45 cents per A linked unit from 42.34 cents previously. Distribution was up 2.4% to 28.19 cents per B linked unit from 27.54 cents.

Synergy said it continued to operate in a challenging macroeconomic and social environment which had been characterised by subdued economic growth, rising inflation, high unemployment, overly indebted consumers and reduced consumer spending.

The company expects the current vacancy ratio will reduce to about 4% in the next few months. Rental reversions across the portfolio of 7.4% have been achieved. Synergy had a national tenant ratio of 85% at 31 December 2014 in line with Synergy's target ratio.

A tenant retention ratio of 68% was achieved during the period under review.