Redefine refines property portfolio

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“Redefine has substantially advanced its strategy of repositioning and improving the quality of the core property portfolio. The emphasis in acquisitions, wherever possible, is to secure fully repairing leases with premium tenants,” the company said.

“Three properties were acquired and transferred during the period for an aggregate purchase consideration of 699 million rand at an initial yield of 7.6 per cent. During the period, four properties, no longer meeting Redefine’s investment criteria, were sold to various buyers for an aggregate consideration of 79 million rand.”

[DATA RDF:Redefine], which owns and manages a diversified portfolio of commercial, industrial and retail property, also reported 4 billion rand in property acquisitions in progress and developments in progress totalling 3.5 billion rand.

Revenue from its property portfolio increased to 2.1 billion rand for the six months ending 28 February 2014 from 1.3 billion rand for the same period in in 2013.

(READ MORE: Company changes reflected in Redefine’s FY results)

Net operating income grew to 1.7 billion rand in the 2014 period from 1.2 billion rand in 2013 and profit before taxation was up from 289 million rand to 1.5 billion rand.

The property company however reported a headline loss attributable to Redefine shareholders of 373 million rand in 2014 from a profit of 104 million rand in 2013 while headline earnings per linked unit decreased from 37.47 cents to 24.78 cents.

“A challenging trading environment, disproportionate increases in utility costs and continued financial market volatility are anticipated to continue. Notwithstanding these factors, Redefine is well focused on managing the variables within its control,” it said.

(READ MORE: S.Africa’s changing property market landscape)

“Accordingly, Redefine anticipates growth in distributable income per linked unit for the second half of 2014 at a rate similar to that achieved in the current period.”