Redefine Properties’ latest results indicate that it expanded its assets by R1.9bn and has grown its Polish footprint, while scaling back in Australia.
JSE-listed diversified real estate investment trust (REIT) Redefine Properties’ results came just days after it gave KPMG the old heave-ho, joining an already-long list of companies that have cut ties with the beleaguered auditing firm.
“We felt KPMG did not go deep enough in working through corrective measures,” explains Redefine CEO, Andrew Konig.
Posting a 5.5% increase in distribution to 47.30c/share for the interim period to 28 February and maintaining that for the full financial year might appear lacklustre, but not unexpected given the continued tough economic climate.
“It’s a good set of results,” says Naeem Tilly, investment analyst at Catalyst Fund Managers, adding that the impact of improved confidence following the appointment of Cyril Ramaphosa as president will only come through in property stock numbers in a year or so.
Still, Redefine lowered its loan-to-value (LTV) level from 41.1% to 40.1%, grew distributable income by 8.6% to R2.5bn and improved overall occupancy to 95.8%. Net asset value (NAV) also grew by 31c to R10.54.
The REIT expanded its assets by R1.9bn taking total assets to R93.4bn, with the R85.6bn property platform remaining biased towards retail at 41% of sectoral value spread. Offices comprise 37%, industrial 14%, student accommodation and specialised assets 3% and hotels 2%. Disposal of non-core assets amounted to R2.6bn, bolstering liquidity.
On the local front, which accounts for 80% of its portfolio value, lease renewals have been under pressure but despite this the REIT managed a 94.7% retention rate. But it comes at the cost of rental renewal growth.
Bu hikaye Finweek English dergisinin 24 May 2018 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Finweek English dergisinin 24 May 2018 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
