“Redefine has made further substantial progress in implementing its strategy of diversifying, growing and improving the quality of the core property portfolio. The emphasis in acquisitions, wherever possible, is to secure fully repairing leases with blue-chip tenants,” the South African REIT said.
(READ MORE: Redefine refines property portfolio)
“Twenty-six properties, with a GLA of 275 095 m², were acquired and transferred during the year for an aggregate purchase consideration of 4.6 billion rand at an initial yield of 8.0 per cent.”
[DATA RDF:Redefine], which controls a property income earning asset base of 51.1 billion rand, also reported revenue growth from its property portfolio. Revenue increased to 5.3 billion rand in the 2014 financial year from 3.7 billion rand for the same period in 2013.
Net operating profit increased from 2.8 billion rand in 2013 to 3.4 billion rand in 2014 and profit before taxation grew to 3.4 billion rand from 1.5 billion rand.
Its net asset value per linked unit, excluding deferred tax and NCI, increased to 976 cents in 2014 from 870 cents in 2013 while net tangible asset value per linked unit, excluding deferred tax and NCI, grew to 819 cents from 691 cents.
“An upward interest rate cycle, disproportionate increases in administered prices and a lacklustre trading environment pose challenges but will no doubt also create opportunities in the coming year,” Redefine said.
(READ MORE: Redefine report card goes from D to A)
“The diversified asset base combined with management’s relentless focus on achieving cost efficiencies, strongly positions Redefine to actively pursue its strategy. Growth in distributable income per share for 2015 is anticipated to be between seven per cent and 7.5 per cent.”
It also stated that this forecast is predicated on the assumption that current trading conditions will prevail with forecast rental income being based on contractual terms and anticipated market-related renewals.