Rental levels, lower rates lift Redefine

Posted On Tuesday, 05 October 2004 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

Listed property loan stock company Redefine Income Fund reported solid financial results yesterday, announcing a 7,56% increase in distributions to unitholders for the year ended August .

Brian AzizollahoffCEO Brian Azizollahoff attributed the increase to a number factors, including improved letting on the part of the company; an increase in rentals; lower interest rates; controlled expenses; and the performance of its listed property portfolio.

Redefine is a hybrid listed property fund which invests in both listed property portfolios on the JSE Securities Exchange SA as well as in fixed property assets. The term hybrid refers to an investment in both listed property stocks and fixed property assets.

Redefine has benefited from its interests in listed property loan stocks Hyprop Investments, ApexHi Properties and Spearhead Property Holdings, which produced positive financial results.

Redefine reported a distribution for each linked unit of 32c, compared with 29,75c the previous year.

Stanlib Property Income Fund fund manager Mariette Warner said that Redefine was on a "normalised base", after the Arnold Property Fund (A-Prop) "disappointment" where Redefine suffered a permanent loss in income from which it could not recover.

Listed property loan stock A-Prop, which has been turned around by its new fund managers Corovest, suffered a substantial drop in the value of its units, as well as a drop in distributions.

Redefine, whose interest in A-Prop was previously more than 30%, suffered a drop in distributions last year because of this. Redefine has also reduced its interest in A-Prop to 9,7%.

Warner said Redefine's 15% increase in net asset value from 240,79c a linked unit last year to 276,9c a linked unit emphasised the strengthening of the underlying physical property market insofar as higher market rentals and lower vacancies were concerned.

Redefine, which has managed to lease 94,7% of its property portfolio, is positive about the company's prospects moving forward, saying it was also expecting growth in its distributions for next year.

The company has also purchased a 50% undivide share in a property at Shelly Beach in KwaZuluNatal for R155,5m in a post-balance sheet transaction. A shopping centre worth about R200m will be developed on the site.

Last modified on Tuesday, 13 May 2014 10:31

Most Popular

Investec Property Fund launches first REIT sustainability-linked ESG bond in Africa

Apr 22, 2021
Investec Property Fund (‘IPF’ or ‘the Fund’) today became the first South African real…

Rethinking office space in post pandemic SA

Apr 20, 2021
Since the beginning of the pandemic, one of the biggest questions in real estate has been…

4 simple rules to getting a good credit score

Apr 21, 2021
Make buying your dream home an informed purchase by knowing your credit score.

EPP’s new app takes tenant relations to the next level

Apr 22, 2021
Johannesburg Stock Exchange listed EPP, Poland’s biggest retail landlord, continues to…

Western Cape ripe with affordable housing potential

Apr 20, 2021
The TUHF Western Cape regional team believes that even though COVID has had an impact on…

Please publish modules in offcanvas position.