For the quarter ended 31 August 2003, Redefine declared a distribution of 8.25 cents per linked unit.
Redefine's operating profit for the year under review increased by 11% to R324 million. Non-current assets reflected an increase of 10.04% to R2.70 billion, with net asset value per linked unit rising to R2.77 from R2.41 in 2003. Market capitalisation increased by R380 million to R1.33 billion.
In line with its stated intention to reduce gearing in the medium term to 45%, Redefine decreased gearing from 58% to 52% during the year under review.
"During the period Redefine's stated strategy was to weight its investment portfolio in favour of physical properties, which currently offer better value in terms of both yield and growth," said Redefine CEO Brian Azizollahoff.
"In achieving this, Redefine reduced its listed portfolio from 15 to 11 counters.
Agreements to acquire properties to the value of R450 million are in advanced stages of negotiations, for which Redefine will sell a further R230 million worth of listed securities resulting in an investment ratio of 61%:39% in favour of physical properties," explained Azizollahoff.
Redefine's listed securities portfolio was valued at R1.35 billion at the close of the financial year having increased by R40 million as a result of a growth in market value of R176 million, less net disposals of R136 million.
During the year under review, Redefine acquired four prime buildings including 2 Arnold Road in Rosebank, Hatfield Square in Pretoria, Standard Bank Centre in Cape Town and Motown in Durban. Redefine disposed of 21 non-core properties with capital values below Redefine's investment criterion of a minimum of R20 million per property, for R167 million.
Redefine's physical property portfolio was independently valued at R1.345 billion. The property portfolio consists of 73 properties covering 453 872m2 of which 63% is commercial, 22% retail and 13% industrial.
Redefine's lease expiry profile leads the sector with 54% of leases expiring in 2008 and beyond.
Proactive leasing and tenant retention initiatives ensured that approximate 34 100m2 of vacant space was let during the year and 25 800m2 of leases were renewed. Redefine's property portfolio is 94.7% let and comprises predominantly A-grade tenants.
Redefine will continue with its stated strategy to weight its investment portfolio in favour of physical properties through the further reduction of its listed property portfolio to around 9 counters, at a ratio of approximately 40% of its entire investment portfolio.
"We will continue to seek out suitable investment opportunities in listed securities with income growth being the focus of any such investment," said Azizollahoff.
Redefine's acquisition of 90 Rivonia Road and 90 Grayston Drive in Sandton, an undivided 50% share in a property at Shelley Beach in KwaZulu-Natal and a portfolio of 9 commercial, retail and industrial properties in Gauteng and KwaZulu-Natal reflects growth through the acquisition of properties with A-grade tenants on minimum 5-year leases in prime locations, with an increased focus on retail property.
Redefine will also dispose of its remaining properties with values less than R20 million each and to this end has already sold Saambou Blackheath, 12 Rivonia Road in Sandton and a portfolio of 4 Western Cape buildings.