Redefine International tightening portfolio focus


“It has been a busy period as the company progresses its strategy of improving the overall quality of its portfolio and its income generating potential. New investment has typically targeted larger assets, which provide significant asset management and development options to create further value,” said [DATA RPL:Redefine International] chairman, Greg Clarke.

“These, together with ongoing sales of smaller and non-core assets, are expected to tighten the focus of the portfolio.”

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The diversified Real Estate Investment Trust (REIT) also reported that its total revenue increased to 35.8 million pounds for the six months ending 28 February 2014 from 30.4 million pounds for the same period in 2013.

“Our conversion to a UK-REIT and the internalisation of our management in December 2013 marked the successful conclusion of the strategy outlined to shareholders over 18 months ago. This has, in turn, resulted in a larger free float and enhanced liquidity,” said Clarke.

“This, combined with the growth in the company’s market cap and reduction in leverage, has created access to new sources of funding and the ability to drive down the cost of capital, which will support our strategy to invest into high quality assets generating strong income flows with the potential for capital growth.”

However, its profit before taxation showed a sharp decrease from 18 million pounds in 2013 to two million pounds in 2014 and a loss attributable to equity holders of the parent of 897,000 pounds in 2014 from a profit of 16 million pounds in 2013.

The company also reported a basic loss per share of 0.08 pence in 2014 and a diluted headline loss per share of 0.22 pence.

“Our approach to new investment and pricing remains cautious, particularly where the institutional market is concerned. We do however continue to see attractive off-market opportunities which can either be financed at rates which are accretive to earnings or offer development opportunities where we believe we can create value for the group,” said Clarke.

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Redefine International chief executive, Mike Watters, said, “Based on current market conditions, our expectations are for full year earnings to be in line with management expectations. With our focus on positioning the company and its portfolio for future growth, we look forward with confidence.”