Redefine Properties has reported increased revenue for the first half, driven by contractual rent escalations and new leases.
The JSE-listed real estate investment trust (Reit) reported a 3.5% rise in revenue to R5.4bn for the six months to end-February, while headline earnings per share (HEPS) rose 75.5% to 18.43c.
Distributable income per share was up 0.7% to 25.52c and a dividend of 20.42c per share was declared, representing an 80% payout ratio, the group said in a statement on Monday.
The company said its SA portfolio achieved a net operating profit margin of 77.8% and the Polish retail property platform improved its margin from 66.4% to 71.7%, contributing to a consolidated group net operating profit margin of 75.9%.
The company said its industrial sector performed well, with a 97.6% occupancy rate and positive rental reversions. However, the office sector faced challenges due to oversupply and subdued demand.
Redefine owns 59 retail properties in SA, including Centurion Mall, Blue Route Mall, Benmore Centre, Centurion Lifestyle Centre, Cradlestone Mall and East Rand Mall. It also has assets in Poland.
Founded in 1999, the company focuses on owning, developing, and managing quality properties with an emphasis on sustainable cash flow growth and disciplined capital allocation.
Looking ahead, Redefine expects distributable income per share for the full year to range between 50c and 53c, driven by “strategic asset management and proactive leasing”.
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