Redefine Int. to properly position property portfolio

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Texton retains tight control of assets

“The past year has again been a demanding and busy period for the company. It is pleasing to report an increase in earnings to record levels, while also successfully delivering on the challenging objectives that we set ourselves at the start of the last financial year,” said company chief executive, Mike Watters.

(READ MORE: Redefine International tightening portfolio focus)

“We are now well underway with our wider ambition of becoming a leading income focused UK-REIT and our attention is firmly re-focused on ensuring our property portfolio is well positioned to produce consistent and growing income returns for our shareholders.”

Watters added that [DATA RPL:Redefine International] now has critical mass in the retail, commercial and hotel sectors in the UK and has taken a big step forward in building its German portfolio.

“Against this backdrop, with our strengthened financial position and the flexibility to allocate capital to those areas of our portfolio which are expected to provide the best risk-adjusted returns, we look forward to the future with confidence,” he said.

The diversified Real Estate Investment Trust (REIT) further indicated that its gross rental income revenue increased to 66 million pounds for year ending 31 August 2014 from 51 million pounds for the same period in 2013.

Investment income increased to 10 million pounds in the 2014 year from two million pounds in 2013 and net property income grew to 61 million pounds from 36 million pounds in 2013.

Profit before tax rose to 101 million pounds in 2014 from 67 million pounds in 2013. However, basic headline earnings per share decreased from 2.64 pence to 1.94 pence.

“We remain committed to our business model of being a diversified income focused UK-REIT. Investment markets remain competitive and assets with sound fundamentals have typically transacted at prices well above asking levels,” said Watters.

(READ MORE: Redefine reshuffles its board and executive team)

“Despite a substantial cash holding at year end, we will continue to be disciplined in our investment approach. As an increased number of sellers enter the market to take advantage of recent yield compression, opportunities to acquire good quality assets may improve in 2015.”