Redefine Properties has upgraded its full-year distributable income guidance as signs of operational momentum begin to come through.
The company on Tuesday, in its pre-close update for the year to end-August, said it now expected to report distributable income of 51.5c-52.5c, higher than it previously guided.
The group said improved efficiencies, and a disciplined capital structure helped bolster its earnings.
Retail tenant turnover rose nearly 5%, driven by comparable growth in trading densities — a signal that tenants were better positioned to absorb rental escalations.
Occupancy levels continued to firm up, while renewal reversions showed steady improvement.
Meanwhile, the industrial portfolio remains a standout performer with demand for modern logistics facilities showing no signs of slowing.
Strategic land holdings in Johannesburg south and the Western Cape have positioned Redefine for further expansion, the group said.
The office sector, long a weak spot, is showing tentative signs of recovery. “Renewal activity has stabilised, particularly in premium-grade buildings, providing confidence that positive income growth is on the horizon,” the group said.
In its Polish portfolio, Redefine reported strong performance, driven by the strategic positioning of its assets in urban centres. Occupancy held firm at 97.9%, with rent collection nearing 100%, while like-for-like turnover rose 2% despite a slight dip in footfall — pointing to increased consumer spend per visit.
Polish logistics platform ELI has continued to deliver solid results since its separation from Madison International Realty.
Vacancy rates had been halved, dropping from 6% to 3%, rental growth on renewals reached 6.3%, and the platform maintained a healthy weighted average lease term of 5.1 years, underscoring its income stability, it said.
The group’s liquidity position remains robust with R7.6bn in cash and undrawn facilities and a weighted average cost of debt reduced to 6.6% while its loan-to-value ratio is improving to within the 38%-41% target range.
It also grew its renewable energy capacity by 9.3MW, bringing the total to 52.5MW during the period, with an additional 13MW of projects under way. The investment is set to increase the group’s renewable energy footprint by a further 20%.
“We are encouraged by SA’s expected removal from the Financial Action Task Force greylist in October, and we remain hopeful for an S&P sovereign credit rating upgrade in 2026, while interest rates have settled at long-term averages, providing stability after a period of steep hikes,” CEO Andrew König said.
“Over the past year, each time we thought the skies were clearing, a new dark cloud appeared. But those clouds have dissipated and today Redefine is in better shape than at the start of the year,” König said.
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