Redefine meets earnings targets
Redefine Properties International (RIN) says it continues to meet its targets and expects to deliver on the earnings forecast and strategic objectives set out in the prospectus at the time of the reverse acquisition of Wichford PLC in 2011.
Redefine - which invests in retail, office, industrial and hotel sectors - posted a 3.5% rise in its distribution per linked unit to 2.09 pence for the six months ended February 2012, from the same period a year earlier. Earnings available for distribution were up 53.6% to GBP12.9 million.
The company - whose investment portfolio is geographically diversified across the UK, Europe and Australia - said its underlying performance in the period under review remained sound despite tough business conditions.
The tenant covenant strength of the UK stable income portfolio, strong performance of the hotel and European portfolios and a solid contribution from Cromwell more than offset the weaker performance of the UK retail and stable income portfolios, illustrating the benefit of Redefine International's diversified portfolio. Cromwell is the Australian listed property trust in which the company holds a 23% interest.
Values in the UK retail and UK stable income portfolios suffered from weak tenant and investment demand, however occupancies remained resilient at 96.4%.
"It is pleasing to report that the new enlarged group is on track to meet the company's distributable earnings forecast ... as set out in the reverse acquisition prospectus with earnings available for distribution of 2.23 pence per share for the half-year period," said Greg Clarke, chairman of the group.
Redefine International is listed on the main market of the London Stock Exchange and is part of Redefine Properties (RDF) which is listed on the JSE.
Mike Watters, Redefine MD, said, the remainder of the financial year would be focussed on the expiring debt facilities, the consequent capital raising and the disposal of certain Wichford legacy assets.
At 14:59, the stock was up 10 cents, or 1.85% to R5.50.
