Redefine earnings 60.31c vs 19.01c

Posted On Thursday, 29 October 2009 02:00 Published by eProp Commercial Property News
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Redefine Income Fund has reported that its headline earnings per linked unit for the year ended August 2009 are at 60.31c compared to 19.01c reported in 2008.

Marc WainerRedefine Income Fund on Wednesday reported that its headline earnings per linked unit for the year ended August 2009 were at 60.31 cents compared to 19.01 cents reported in 2008.

Distribution per linked unit for the year was at 56.55 cents compared to 56.63 cents before.

Redefine said it declared a distribution of 11.75 cents per linked unit for the two months ended August 31 2009.

The distribution for this period represented the consolidated earnings of Redefine, incorporating ApexHi and Madison.

Total revenue for the period was at R1.132 billion from R926.981 million in 2008.

On July 30 2009, Redefine unitholders were advised that all conditions for the merger between Redefine, ApexHi and Madison had been fulfilled.

In terms of the scheme, the effective date of the merger was July 1 2009.

However, as all conditions precedent were only fulfilled on 30 July 2009, income earned by ApexHi and Madison for July 2009 has not been consolidated.

Redefine has accounted for this income, amounting to R105 million, by reducing the cost of its investments in ApexHi and Madison and has included the income in its final distribution for the year ended 31 August 2009.

The results of ApexHi and Madison have been consolidated with effect from 1 August 2009 as this is the date of the business combination.

Redefine said the revised listing particulars issued in March 2009 (RLP) forecast a total distribution of 62.21 cents per linked unit for the year to August 2009.

This comprised a distribution of 50.50 cents for the 10 months to 30 June 2009 for Redefine pre-merger, and 11.71 cents per linked unit for the two months to August 31 2009 for Redefine post-merger.

The total of 44.80 cents distributed for the 10 months ended 30 June 2009 was lower than the forecast of 50.50 cents, primarily due to reduced distributions from the listed portfolio and lower profits from property trading.

The distribution of 11.75 cents per linked unit for the two months ended August 31 2009 was marginally higher than the forecast of 11.71 cents and, together with the distribution of 44.80 cents for the 10 months to June 30 2009, resulted in a total distribution of 56.55 cents per linked unit for the year ended August 2009, a marginal decrease on the total distribution of 56.63 cents for the previous year, it said.

At August 31 2009, the property portfolio comprised 403 properties with a total gross lettable area ("GLA") of 3.6 million m2 valued at R18.2 billion.

The substantial increase in the size of the portfolio is a consequence of the merger with ApexHi, said Redefine.

All of the properties were valued in July and August 2009.

The major portion of the portfolio was valued by independent external valuers and properties, constituting 9% of the portfolio, with a value of less than R20 million each were valued by the directors.

At August 31 2009, Redefine said it had five projects at various stages of development with an estimated cost to completion of R205 million and land valued at R180 million for future development.

The management of Redefine, ApexHi and Madison has been successfully integrated which will result in efficiencies and synergies, said Redefine.

"The property management model is being re-evaluated which could result in additional economies.

Savings in property management and administrative expenses and in interest on borrowings may take longer to realise than was originally anticipated and, together with the effects of the global economic recession, the distribution per linked unit for the year ending August 31 2010 is expected to be below the forecast of 74.67 cents contained in the RLP.

Looking ahead, the board anticipates that the total distribution for the year ending August 31 2010 will be between 68 cents and 71 cents per linked unit, an increase of between 20% and 25% on the distribution for 2009.

Redefine is one of the largest listed South African property companies with a diversified portfolio comprising 403 properties valued at R18.2 billion and a R2.8 billion portfolio of South African and international listed investments.

 

Last modified on Monday, 28 April 2014 19:47

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