Redefine has reported a 7.8% increase in distributable income as early signs of improving business and consumer confidence begin to filter through in firmer leasing activity.
The boost was partly driven by the country’s recent removal from the Financial Action Task Force greylist and the prospect of a sovereign credit rating upgrade, the group said on Monday in its results for the year ended August.
“The finalisation of SA’s greylisting exit is significant – it will translate into lower costs of capital, attract more foreign investment flows and further deepen domestic liquidity. We’re already seeing the bond market pricing that in,” CEO Andrew König said.
Headline earnings per share rose 11.1% to 36.74c and distributable income per share up 4.7% at 52.39c. Dividends also climbed 7.8% to 45.84c while the SA Reit net asset value per share nudged 3.6% higher to 816.45c.
Retail and industrial assets showed strength while the office sector is still finding its footing. The group said operating fundamentals are stabilising with occupancies rising, renewal reversions improving and asset values across all three sectors posting year-on-year gains. Even office valuations have turned positive on a total-basis view, it said.
“Industrial continues to perform strongly, with high demand for logistics and warehousing near major transport routes pushing rents higher. It’s a sector we’re keen to expand, especially where we have developable land,” the group said.
Watch: Redefine CFO Ntobeko Nyawo
The group remained upbeat on office demand, with deal activity pointing to stabilising sentiment. Key nodes, especially in the Western Cape, have outperformed, with strong provincial stability and consistent governance driving the country’s lowest vacancy levels, it said.
“Looking ahead, a swift, peaceful and conclusive local election outcome would be a meaningful catalyst for offices, particularly in Gauteng, by restoring certainty around municipal service delivery and enabling businesses to commit to space,” Redefine said.
The group trimmed its loan-to-value ratio from 42.3% to 40.6%, cut SA debt margins by 20 basis points and holds liquidity of R6.7bn. It sold R1.1bn of noncore assets during the period, reinvesting a similar amount into upgrades and energy-efficiency projects.
Meanwhile, its Polish platform core retail assets maintained a 99.4% occupancy rate, while European Logistics Investment’s logistics operations doubled their distributable income contribution to R214m driven by rising occupancies of up to 96.8% and higher market rentals.
“Poland enjoys GDP growth roughly three times that of SA and very low unemployment. That’s created a robust consumer market that continues to support our retail and logistics assets,” said König.
Looking ahead, Redefine expects distributable-income-per-share growth of 4%-6% in financial year 2026. König also highlighted the group’s long-term turnaround: while the share price has delivered a 310% total shareholder return over five years, the recovery reflects more than market momentum.
“When Covid hit, our share price fell sharply, so part of that growth is off a low base. But what really matters is how fundamentally the business has transformed. Five years ago our strategy was scattered across multiple geographies and asset classes. Today we’re focused, disciplined and in control of every asset. That focus has changed how Redefine looks and feels, and it shows in our performance,” he said.
