Redefine Properties International on Tuesday reported a distribution of 2.02 pence per linked unit for the six months ending in February. The property fund said the dividend was based on the distributable earnings of £8.4 million.

"The interim dividend declaration illustrates that the company is on track to achieve the forecast dividend for the year ended August 31 ... and reflects a steady operational performance across the group," it said.

Net operating income for the period came in at £12.4 million compared with £1.045 million previously.

Redefine Properties International is a property investment and development company and owns investments in commercial and retail properties in the UK, Switzerland, Germany and the Channel Islands.

Chairman Gavin Tipper said that the period under review was an active and important one for the group as it returned to overall profitability with both operating profit and total profit being positive for the first time since the 2008 credit crisis.

Profit from core operations was up 146.3% at £8.4 million. The company said trading results were bolstered by rental income on a number of acquisitions and tight cost containment.

Through its listing on the JSE, the group said it was able to significantly strengthen its statement of financial position, diversify investment portfolio into hotel properties and consolidate its strategic holding in the Cromwell Group in Australia. Shareholding in the Cromwell Group increased to 22.2%.

The group remained cautious, however, about the general economic environment for the remainder of the financial year.

"In the UK, banks continue to reduce exposure to the property sector, which will limit any short-term increase in commercial property values, notwithstanding inflationary pressures. Interest rates are expected to remain at relatively low levels in both the UK and Europe in the near term," it said.

The company's investment manager, Redefine International Fund Managers Limited, said, however, that the group's investment portfolio was well-diversified and defensive, and was well-placed to weather these short-term pressures and provide solid returns to shareholders in the medium to long term.

Source: I-Net Bridge