This brings the total distributions for the first six months of Redefine's financial year beginning 1 September 2004 to 17.25 cents per linked unit, representing an increase of 11.29% from six-month period ended 29 February 2004. Payment of the interest distribution will be made on Monday, 16 May 2005.
This positive performance is set to continue. "The Redefine Board anticipates that the distribution per linked unit for the quarter ended 28 February 2005 will at least be maintained for the remainder of the current financial year," said Brian Azizollahoff, CEO of Redefine.
Redefine is one of the most liquid counters in the listed property sector with 31% of its total linked units traded during the six months ended February 2005.
Redefine's Net Asset Value per linked unit increased by 36.93% to R3.63 at 28 February 2005 and its total assets increased by 28.69% to R3,7 billion.
During the period under review Redefine purchased properties valued at R485 million including the Collins Portfolio of 9 buildings in Gauteng and KwaZulu-Natal, 90 Rivonia Road, 90 Grayston Drive, Rosebank Arena, Riverside Value Mart and Southcoast Mall. It also disposed of non-core properties to the value of R57 million.
These acquisitions and sales resulted in the number of properties owned by Redefine being increased to 77 and has increased the directly owned property portfolio to 57.66% of Redefine’s total non-current assets, from 46.06% at the end of February 2004.
"Current yield differentials favour fixed property and therefore Redefine increased its fixed property holdings in line with its stated strategy. Furthermore, as a result of the strong value which retail property represents, it is our intention to increase retail assets to approximately 35% of the portfolio," said Azizollahoff.
The sectoral spread by revenue comprises 64.3% commercial, 21.2% retail, and 14.5% industrial.
Leasing has contributed to Redefine's robust performance with 18 865m2 of vacant space leased and 17 847m2 of renewals achieved during the period. At 28 February 2005 96.3% of its portfolio was leased (Feb 2004: 93.4%).
Redefine's lease expiry profile has continued to improve and outperform the sector average with 66.7% of leases expiring in 2008 and beyond.
Redefine's listed securities portfolio increased by 12.5% during the past six months to R1.5 billion.
Transactions with significant impact on Redefine's listed securities portfolio include its increased holdings in S A Retail Properties Limited to 26.9% of the total units in issue. Redefine also disposed of its entire holding in Growthpoint Properties Limited and Martprop Property Fund Limited, using the revenue to acquire direct property and reduce debt.
Redefine's borrowings of R1,5 billion represents gearing of 42.64%, a reduction from 52.35% at the end of its financial year in August 2004 and 55.51% at 28 February 2004. "This is in accordance with Redefine's long-term strategy to reduce gearing to below 45%," explained Azizollahoff.
Redefine's current average all-in interest rate is 10.19% with 73.91% of the borrowings fixed for an average period of four years.
"Redefine has strong strategic direction and we are confident of continued positive performance for the remainder of this financial year," said Azizollahoff.
