Redefine declares distribution of 31 cents/linked unit

Posted On Thursday, 05 May 2011 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

Redefine Properties has declared a distribution of 16 cents per linked unit for the quarter ending in February, which combined with the distribution of 15 cents for the quarter ending in November 2010, results in a total distribution of 31 cents per linked unit for the six months ended February 28.

Marc Wainer

Contractual rental income for the period under review was R1.3 billion compared with R1.1 billion a year earlier. Net operating income came in at R1.2 billion compared with R1.1 billion a year earlier.

Redefine is the second-largest SA property loan stock company by market capitalisation on the JSE, with a diverse range of property assets under management exceeding R29 billion.

On a geographic basis, SA generated 93% of distributable income. Contractual rental income comprised 86% of total revenue, income from listed securities 9% and trading and fee income 5%. Operating costs represented 22.8% of contractual rental income from 21.5% as at August 31 2010.

The company said the bulk of the cost creep related to the once-off duplication of property management costs that arose from the internalisation of property management. Redefine Property International, along with Redefine International Fund Managers Limited, the fund manager of Redefine Property International, contributed 2.3 cents per linked unit to the distribution for the half-year.

During the period under review, leases totalling 246,412 square metres were renewed at an average rental increase of 4.6%. A further 139,059 square metres was let across the portfolio and, together with vacancies from properties disposed of, the total vacancy levels reduced to 8.5% from 10.4% as at August 2010.

Arrears amounted to R34.3 million from R39.7 million as at August 31 2010.

Looking ahead, Redefine said moderate growth was expected from the core property portfolio.

"Fee and trading income are largely unpredictable and difficult to forecast, however the transaction fee of 3.8 cents per linked unit from the Hyprop Attfund transaction is anticipated to be received in the second half of the 2011 financial year. Based on this, the company is anticipating a modest increase in distributions for the year ending August 31," the fund said.

Last modified on Saturday, 26 April 2014 10:04

Most Popular

Pam Golding Properties achieves record price of USD13.6m for sale of luxury home in Mauritius

Mar 12, 2024
Villa sold for USD13.6m Mauritius, patio & pool
The Mauritius office of Pam Golding Properties has sold a six-bedroom, luxury beachfront…

Simplified capital structure and operational performance delivers strong 1H2024 results for Fortress Real Estate Investments

Mar 12, 2024
Cornubia Ridge LP_March 2024
Fortress Real Estate Investments delivers strong 1H2024 results: Simplified capital…

Dipula and REO’s innovative approach to tenant installation for EOH grows a sustainable furniture initiative

Mar 12, 2024
Interior EOH in Montrose Place at Waterfall Park in Midrand 3
Dipula Income Fund’s new lease with EOH for the Montrose Place at Waterfall Park in…

Please publish modules in offcanvas position.