Real estate investment trust (Reit) Liberty Two Degrees (L2D) on Monday declared a full-year distribution per unit of 59.22c, which fell short of its forecast of 65c.

L2D uses distribution per unit as the main measure of its financial performance, rather than headline earnings per share.

The lower than forecast full-year distribution was partly a result of the closure of Stuttafords, as well as an unexpectedly high municipal valuation of the Eastgate shopping centre, which affected municipal rates.

It was also affected by Liberty Group exercising a put option in July on shares worth R2.5bn.

Net property income in the year to December rose to R425m from R28.65m.

The vacancy rate across the L2D portfolio increased to 6.4% from 4.6%.

The company, which listed in 2016, has forecast a full-year distribution of 60c per share in the 2018 financial year.

"In spite of the tough economic environment and the resultant impact on the consumer, the portfolio remains robust with strong underlying property income growth," the company said in a statement.