Bulked up Redefine lifts its distribution by 7%


Bulked up Redefine lifts its distribution by 7%


Published Date: 2017-11-07 | Source: Stephen Gunnion | Author: Stephen Gunnion

Bulked up Redefine lifts its distribution by 7%

The REIT has forecast slower growth this year due to weak growth and subdued confidence in the economy

Redefine Properties has reported a strong rise in turnover for the year to end August, boosted by a spate of acquisitions over the past couple of years. In January, it bought and delisted Pivotal, acquiring 32 properties worth R10.4 billion, including developments in progress and land holdings for future development. That's helped grow its asset base by 16% to R84.1 billion.

Total revenue for the year increased by 17.3%. The real estate investment trust says its property portfolio contributed virtually all its revenue following the disposal of the remaining listed securities in its portfolio, including Delta, Arrowhead and Emira Property Fund. Operating costs were stable at 34.2% of contractual rental income, with its operating margin improving to 82.7%. It's increased its final distribution by 6.5% to 47.18c per share for a full-year distribution of 92c, 7% ahead of last year.

Redefine says its international property investments contributed 27.3% of distributable income, from 25.9% a year ago.

The REIT says political instability, policy uncertainty, an ever increasing fiscal deficit and a volatile rand are weighing heavily on the domestic outlook. Against this backdrop, it says it has adapted its strategic approach to cope with a prolonged slow-growth and subdued confidence environment. It expects growth in distributable income per share for 2018 to range between 5% to 6%.

Its shares shed 2% yesterday to close at R10.71.


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