Redefine CEO Marc Wainer
Property group Redefine on Thursday declared a distribution of 68.7c per linked unit for the financial year ended August 31, up 7.3% from the year before, and expected to continue this growth into the next year.
Redefine moved ahead of expectations on the back of the continued success of its strategy, the expansion of its local property portfolio, the acquisition of prime quality assets and rigorous cost control.
The property company’s net asset value also increased by 8.6% in the financial year.
Strict cost controls and the internalisation of its electricity cost recoveries during the year enabled Redefine to reduce its operating cost ratio to 20% of the total revenue during the year under review, from 23.7% in the prior year.
“Redefine's primary objective is to achieve sustained income growth for investors and we have delivered, and surpassed, our market guidance for the 2013 financial year. We're pleased to report a positive set of results that shows a transformed and strengthened balance sheet for Redefine," said CEO Marc Wainer in a statement.
The group’s total revenue for the year rose to R3.6-billion, from R3-billion the year before, with contractual rental income reaching R3.1-billion, up from R2.5-billion in 2012.
"We continued to improve the quality of the core property portfolio during the year. Redefine's average value per property is now approaching R100-million, compared to R80-million a year ago," he explained.
Redefine had injected R1.3-billion into acquisitions yielding an average of 7.2%, while approving R2.6-billion in developments that would yield 8% and embarking on redevelopments valued at R619-million at an average yield of 9%.
Wainer noted that the strengthened portfolio contributed to the improvement in the vacancies in lettable space, from 5.8% last year, to 5.3% during the year to August. Redefine achieved an 80% tenant retention rate and a positive rental reversion of 6%.