Diversified property group Heriot Reit said on Thursday that it is confident it will manage distribution growth of between 6% and 8% in the year to end-June 2020, despite tough operating conditions in its sector.

The group, which has a portfolio of R4.59bn, upped its distribution 10.4% to 80.87c per share in the year to end-June 2019. However, it had changed its reporting period from the end of May, meaning the results were not directly comparable.

The company’s net asset value per share declined 0.2% to R115 during the period, while net profit after tax fell 58% to R213.92.

“Heriot remains committed to its strategy of acquiring high-quality properties, and redeveloping existing properties, to add value both in terms of capital growth and rental appreciation,” the statement read.

The little-traded share was unchanged at R11 on Thursday, giving the company a market capitalisation of R2.8bn.