Redefine Properties, an internationally diversified real estate investment trust listed on the Johannesburg Stock Exchange said its property portfolio revenue rose to ZAR6,5 billion compared to ZAR for the full year to end August 2016.
In an email statement, Redefine Properties said “There is no doubt that in the prevailing macro-economic environment trading conditions have been difficult. For Redefine this has been a year of alignment – we have aligned our structures and refined our business processes. Our focus remains on operating efficiently, investing strategically, optimising capital, engaging talent and growing our reputation,” says CEO Andrew Konig.
In Rand terms, the total distributable income for the year was up 21.9% to R3.9 billion and, with a second half distribution of 44.3 cents per share (up 8%), the full year distribution per share increased by 7.5% to 86 cents.
Redefine Properties said prospects for 2017 are subject to numerous factors which remain uncertain, including volatile financial markets, the continuing possibility of a sovereign credit downgrade and the outcome of the offer to acquire Pivotal. Growth in distributable income per share for 2017 is anticipated to range between 7.5% to 8.5%.
During the past year Redefine expanded its property base by R8.9 billion rand, with the bulk of the investment into a 1.2 billion Euro high-yield commercial portfolio in Poland. “International property assets total 22.6% of assets, up from 14.8% a year ago, contributing 25.9% of income in the period versus 16.7% in the previous year,” says Konig.
In September, Redefine successfully placed Euro 150 million exchangeable bonds due in 2021, with the proceeds to be used in part settlement of the bridge facility used to fund the investment into Poland.
Redefine’s loan to value ratio was 38.5% at the year end, which chief financial officer Leon Kok says is regarded as satisfactory. “Given concerns about higher interest rates, 82% of our debt is fixed, which protects us against interest rate spikes and the impact on income going forward,” says Kok.