Redefine Income Fund Limited, the top performing listed property counter of 2005, continues to deliver sterling results with a 21% growth in distributions for the six months ended 28 February 2006 over the comparative period.

Redefine announced an interest distribution of 10.6 cents per linked unit for the quarter ended 28 February 2006 which, together with an interim distribution of 10.3 cents per linked unit for the quarter ended 30 November 2005, amounts to a total interest distribution for the six months ended 28 February 2006 of 20.9 cents per linked unit.

“This distribution corresponds with the forecast and we anticipate that the total distribution per linked unit for the six months ended 28 February 2006 will at least be maintained for the remainder of the current financial year,” notes Redefine Income Fund CEO Brian Azizollahoff.

The company increased total assets by 40% to R5,2 billion at 28 February 2006 (Feb 2005: R3,6 billion) while its net asset value (NAV) per linked unit increased by 60% to R5,82 (Feb 2005: R3.63).

Redefine is one of the most liquid counters in the listed property sector with 29.2% of its linked units in issue having traded during the six month period.

Redefine’s borrowings of R1,9 billion represent gearing of 36.9%, a reduction
from 42.6% in the corresponding period, with a current average all-in interest rate of 9.9% and the interest rate of 69.3% on borrowings is fixed for an average period of five years.

The value of Redefine’s portfolio of properties, which was revalued by the directors at 28 February 2006 (and which is revalued by independent external valuers at the end of each financial year), increased by R324,1 million or 15.7% to R2,39 billion. This also reflects Redefine’s R16,1 million acquisition of an industrial property in Isando and its disposal of five properties, which generated net proceeds of R31,3 million.

During the period under review new leases were secured over 16,038m2 of vacant space and leases in respect of 21,575m2 were renewed. Redefine’s lease expiry profile has continued to improve and outperform the sector average with 63.5% of leases expiring in 2009 and beyond. At 28 February 2006, 97.3% of the property portfolio was leased (Feb 2005: 96.3%).

The sectoral spread of Redefine’s property portfolio, by revenue, comprises 56.8% commercial, 24.5% retail and 18.7% industrial. It is Redefine’s strategy to increase its retail assets.

“The property portfolio now comprises 47% of Redefine’s total non-current assets compared to 57.7% during the comparable period. The reduction in the ratio arises from a positive re-rating of the listed property sector,” explains Azizollahoff. The value of Redefine’s listed securities portfolio increased by 77.7% from February 2005 to R2,7 billion.

Redefine accepted the offer made by Hyprop Investments Limited to acquire SA Retail linked units and obtained an additional 20,7 million Hyprop linked units. Subsequently an additional 8,2 million Hyprop linked units were purchased increasing Redefine’s holding in Hyprop to 28.9%.

As a result of the swap of Prima Property Trust units for ApexHi units, Redefine received an additional 12,3 million ApexHi ‘A’ and 12,3 million ApexHi ‘B’ linked units. Furthermore, Redefine purchased an additional 15,6 million units in Marriott Property Fund.

The distribution will be paid to Redefine linked unitholders on Tuesday, 2 May 2006.

The Board of Redefine has resolved to implement a rights offer to raise capital of R310 million.  The proceeds will be utilised to pay for recent acquisitions, developments and re-developments of buildings in the portfolio.  Says Azizollahoff: “there is a demand for listed property units at this time which makes the raising of capital opportune.  There are a number of new investments that we have secured which facilitate our objective to grow the fund and these will have a positive effect on distributions”.

~ Ends ~

Issued on behalf of Redefine Income Fund
Brian Azizollahoff/Wolf Cesman
T:       011 283 0110/283 0124

By:

Marketing Concepts
Sandy Davey/Bronwen Noble

T        011 783 0700
C         083 453 6668   (Sandy)
C         082 855 4349   (Bronwen