Profile
Redefine is a South African-based Real Estate Investment Trust (REIT), invested in a diverse property asset platform valued at R81.0 billion (FY19: R95.4 billion). Redefine’s portfolio is predominately anchored in domestic directly held retail, office and industrial properties, and is complemented by retail and logistics property assets in Poland.
Redefine’s purpose is to create and manage spaces in a way that changes lives, which requires more than a business-as-usual approach – it requires an integrated approach to sustain value creation for all stakeholders.
Redefine is listed on the Johannesburg Stock Exchange (JSE) and has a market capitalisation of R14.9 billion (FY19: R45.5 billion) as at 27 November 2020. By volume, Redefine shares are among the most actively traded on the JSE, making it a highly liquid single-entry point for investors to gain exposure to local and Polish real estate markets.
Redefine’s diversified local property assets were valued at R65.4 billion (FY19: R72.8 billion). The group’s international real estate investments, valued at R15.6 billion (FY19: R22.6 billion), represented 18.9% (FY19: 23.7%) of total property assets, providing geographic diversification to Poland and Australia.
Financial results
Distributable income per share for the year ended 31 August 2020 amounted to 51.50 (FY19: 101.00) cents, a decrease of 49.0% on the prior year. Total revenue showed a marginal decline of 0.1% (FY19: growth of 4.1%). Given current volatile market conditions and uncertainty brought about by the pandemic, Redefine’s offshore investments (with the exception of ELI) have withheld dividends during the year to preserve financial flexibility and bolster their liquidity. In addition, Redefine’s local property portfolio performance was heavily impacted by the restrictions imposed by the government to curb the spread of COVID-19. This necessitated the granting of rental relief packages to support the sustainability of our tenants, amounting to R318.0 million. Credit losses have increased by R310.4 million given the heightened risk of tenants failing to meet their rental commitments. These factors account for the bulk of the distributable income decrease.
Redefine’s property portfolio contributed 99.2% (FY19: 98.3%) of total revenue, with the remaining 0.8% (FY19: 1.7%) arising from investment income.
The operating cost margin increased to 38.9% (FY19: 34.4%) of contractual rental income (excluding straight-line rental income accrual). Net of electricity cost and utility recoveries, operating costs were 20.7% (FY19: 16.9%) of contractual rental income (excluding straight-line rental income accrual).
For more information please refer to our RESULTS
Profile
Redefine is a leading South African-based Real Estate Investment Trust (REIT), invested in a diverse property asset platform valued at R89.2 billion (FY19: R95.4 billion). Redefine’s portfolio is anchored domestically in directly held retail, office and industrial properties, and is complemented by property investments in Poland, the United Kingdom (UK) and Australia.
Redefine’s purpose is to create and manage spaces in a way that changes lives, which requires more than a business as usual approach, it requires an integrated approach to sustain value creation for all stakeholders.
Redefine is listed on the Johannesburg Stock Exchange (JSE) and has a market capitalisation of R13.2 billion (FY19: R45.5 billion) as at 30 April 2020. By volume, Redefine shares are among the most actively traded on the JSE, making it a highly liquid single-entry point for investors to gain exposure to domestic and multiple international real estate markets.
Redefine’s diversified local property assets were valued at R71.3 billion (FY19: R72.8 billion). The Group’s international real estate investments, valued at R17.9 billion (FY19: R22.6 billion) represented 20.1% (FY19: 23.7%) of total property assets, providing geographic diversification into the Polish, UK and Australian markets.
Financial results
Distributable income per share for the six months ended 29 February 2020 amounted to 33.46 (HY19: 49.19) cents, a decrease of 32.0% on the previous comparable period. Total revenue showed a growth of 9.6% (HY19: 11.7%). Given current market conditions, unless investee companies publicly declared a distribution prior to the date of this announcement and there is certainty that it will be paid, no dividend has been accrued. This accounts for the bulk of the distributable income decrease.
Redefine’s property portfolio contributed 99.1% (HY19: 97.8%) of total revenue, with the remaining 0.9% (HY19: 2.2%) arising from investment income.
The operating cost margin increased to 36.0% (HY19: 34.7%) of contractual rental income. Net of electricity cost and utility recoveries, operating costs were 17.4% (HY19: 16.8%) of contractual rental income.
For more details please refer to our RESULTS
