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Johannesburg - Redefine Properties [JSE:RDF] on Thursday reported distribution growth of 7.3% for the year ended August 31 2013, outperforming expectations.
Net asset value increased by 8.6%.
CEO Marc Wainer attributes the solid performance to the acquisition of prime quality assets, and rigorous cost control, which have combined to produce strong income growth.
“I’m very pleased with Redefine’s results,” says Wainer, “having achieved 68.7c per unit after setting ourselves a target of 68c.”
Redefine’s operating cost ratio reduced to 20% of total revenue, from 23.7% in the prior year.
“Our primary objective is to achieve sustained income growth for investors and we have delivered, and surpassed our market guidance for 2013,” says Wainer.
“We’re pleased to report a positive set of results that shows a transformed and strengthened balance sheet.”
Redefine achieved this with acquisitions of R1.3bn at an average yield of 7.2%, approved developments in progress of R2.6bn at an average yield of 8% and redevelopments underway of R619m at an average yield of 9%.
It also concluded tactical disposals of R366m with a yield of 10.8%. It now manages a R41bn portfolio of diversified property assets.
The company’s local investments comprise 251 properties valued at R24bn and a R6bn portfolio of listed property securities.
Fountainhead Property Trust, in which Redefine has a 61.9% interest, has an R11bn property portfolio.
“Despite the challenges facing the sector – a subdued trading environment, disproportionate increases in rates and taxes, and continued financial market volatility – we anticipate that Redefine’s distributable income will grow at a similar rate in the coming year.”
Redefine began trading as an SA REIT (Real Estate Investment Trust) on the JSE on September 1 2013. It is internationally diversified through a 32.3% interest in Redefine International [JSE:RIN], listed on both the London and Johannesburg Stock Exchanges, as well as a 12.4% direct holding and a 13.7% indirect holding in ASX-listed Cromwell Property Group.
“We continued to improve the quality of the core property portfolio during the year. Besides increasing the average value of our properties, we’ve also created a portfolio of younger buildings, reducing maintenance and repairs costs,” says Wainer.
On the funding front, Redefine plans to reduce its already conservative loan-to-value ratio of just below 40%.
After year end, Redefine became the first South African listed property company to launch an American Depositary Receipt Programme.
“Redefine will continue to pursue revenue enhancing opportunities and seek new and innovative ways to secure the potential for long-term capital appreciation for our investors,” says Wainer.
Net asset value increased by 8.6%.
CEO Marc Wainer attributes the solid performance to the acquisition of prime quality assets, and rigorous cost control, which have combined to produce strong income growth.
“I’m very pleased with Redefine’s results,” says Wainer, “having achieved 68.7c per unit after setting ourselves a target of 68c.”
Redefine’s operating cost ratio reduced to 20% of total revenue, from 23.7% in the prior year.
“We’re pleased to report a positive set of results that shows a transformed and strengthened balance sheet.”
Redefine achieved this with acquisitions of R1.3bn at an average yield of 7.2%, approved developments in progress of R2.6bn at an average yield of 8% and redevelopments underway of R619m at an average yield of 9%.
It also concluded tactical disposals of R366m with a yield of 10.8%. It now manages a R41bn portfolio of diversified property assets.
The company’s local investments comprise 251 properties valued at R24bn and a R6bn portfolio of listed property securities.
Fountainhead Property Trust, in which Redefine has a 61.9% interest, has an R11bn property portfolio.
“Despite the challenges facing the sector – a subdued trading environment, disproportionate increases in rates and taxes, and continued financial market volatility – we anticipate that Redefine’s distributable income will grow at a similar rate in the coming year.”
Redefine began trading as an SA REIT (Real Estate Investment Trust) on the JSE on September 1 2013. It is internationally diversified through a 32.3% interest in Redefine International [JSE:RIN], listed on both the London and Johannesburg Stock Exchanges, as well as a 12.4% direct holding and a 13.7% indirect holding in ASX-listed Cromwell Property Group.
“We continued to improve the quality of the core property portfolio during the year. Besides increasing the average value of our properties, we’ve also created a portfolio of younger buildings, reducing maintenance and repairs costs,” says Wainer.
On the funding front, Redefine plans to reduce its already conservative loan-to-value ratio of just below 40%.
After year end, Redefine became the first South African listed property company to launch an American Depositary Receipt Programme.
“Redefine will continue to pursue revenue enhancing opportunities and seek new and innovative ways to secure the potential for long-term capital appreciation for our investors,” says Wainer.
