Total distributions for the nine months to 31 May 2007 are 36.6 cents per linked unit, an increase of 16.19% from the 31.5 cents per linked unit paid in the comparable period in 2006.

Redefine CEO Brian Azizollahoff explains that this positive distribution growth can be attributed to the strong performance from the company’s core property portfolio, larger than expected distributions from its listed securities portfolio and the effects of Redefine’s acquisition of Spearhead Property Group flowing through.

“The sector is experiencing the effects of the demand for space as a result of a buoyant economy, much firmer rentals for industrial and office space, a shortage of prime property and a dearth of zoned land suitable for development.  Many economists and property experts have been alluding to the fact that property fundamentals are positive and are driving distributions to unprecedented levels.  In this environment, Redefine benefits from both its direct portfolio as well as its listed securities portfolio,” says Azizollahoff.

Income from the core property portfolio – excluding properties acquired through the acquisition of Spearhead – grew by an impressive 9.25% against the comparable period in 2006. 

Successful leasing reduced the vacancy level of Redefine’s total property portfolio from 5,6% at the beginning of the quarter to 2.8% at the close of the three months, with new leases over some 37,000m2 concluded.   Furthermore Redefine’s lease expiry profile has again improved with 59.3% of leases expiring in 2010 and beyond.

Higher than expected distributions were achieved from Redefine’s listed portfolio. During the quarter Redefine increased its offshore investment in Coronation International Real Estate Fund (CIREF) – a company listed on the London Stock Exchange’s AIM (Alternative Investment Market) – through a ‘rights issue’.  Redefine acquired an additional 3,2 million units in CIREF. Redefine also took up 2,8 million ApexHi A, B and C units in a private placement.

Development trading has been included in Redefine’s activities as a result of its purchase of Spearhead. Profits from this activity are distributed as part of the quarterly distributions. “The trading business is predicated on trading opportunities being sustainable over the long term. Trading is a small percentage of Redefine’s net operating income -- 7% this quarter -- and as the company continues to grow its investments, the percentage will continue to reduce,” explains Azizollahoff.

Redefine’s net asset value (NAV) reached R8.38 compared with R5.92 at the close of the prior comparable period. The Spearhead acquisition and the revaluation of the listed securities portfolio contributed substantially to this increase.

At the time of the Spearhead acquisition, Redefine issued a distribution forecast of 50.62 cents per linked unit for the year to 31 August 2007, which was prepared on a conservative basis and this remains the minimum target for the full distribution.