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Redefine takes cover from domestic headwinds
Redefine takes cover from domestic headwinds. The real estate investment trust says its geographical diversity should provide cover against a tepid local economy.
Redefine Properties says the fundamentals for SA property are likely to remain weak due to an uninspiring economic outlook and low confidence, with decisive economic policy interventions only likely after next year's general elections. The Top 40 real estate investment trust (REIT) believes that its geographical diversity should provide cover against the domestic headwinds.
However, global financial volatility is also likely to continue for the foreseeable future due to the US-led trade ware and geopolitical tensions, it says.
The REIT's property asset platform expanded by 8.6% to R91.3 billion in the year to end-August, with the portion of foreign property increasing to R18.9 billion to make up just over a fifth of total property assets.
It grew recurring income by 6.9% in the year to end August. Total revenue and gross distributable income rose by 8.3% and 8.2% respectively. Property portfolio revenue increased by 4.6% to R8.13 billion. It's increased its final distribution by 5.6% to 49.8c, giving a total distribution of 97.1c for the year. The 5.5% increase was in line with guidance. Its international property investments contributed 24% to distributable income.
Redefine has guided for distribution growth of 4% to 5% for the year ahead on the assumption that current trading conditions will prevail.
Almost every sector in the economy is under huge pressure and everyone is feeling the pinch," the person who said it here which is red "However, we are up for the challenge and will continue deploying capital in SA and abroad, developing properties that are well located, with strong upside potential," says Redefine CEO Andrew Konig."
The REIT's shares ended trade 2.1% up at R9.95.
Items in Redefine's results: (1) Leases for 497491m renewed at an ave rental -1.5% (FY17: +2.9%), (2) Net arrears amounted to 10.9% (FY17: 9.4%) of gross monthly rentals. & (3) Retail vacancies jumped from 3.3% to 4.5% & (4) It impaired its investment in Redefine International!
-- Keith McLachlan (@keithmclachlan) November 5, 2018
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By INCE|Connect NewsRedefine takes cover from domestic headwinds. The real estate investment trust says its geographical diversity should provide cover against a tepid local economy.
Redefine Properties says the fundamentals for SA property are likely to remain weak due to an uninspiring economic outlook and low confidence, with decisive economic policy interventions only likely after next year's general elections. The Top 40 real estate investment trust (REIT) believes that its geographical diversity should provide cover against the domestic headwinds.
However, global financial volatility is also likely to continue for the foreseeable future due to the US-led trade ware and geopolitical tensions, it says.
The REIT's property asset platform expanded by 8.6% to R91.3 billion in the year to end-August, with the portion of foreign property increasing to R18.9 billion to make up just over a fifth of total property assets.
It grew recurring income by 6.9% in the year to end August. Total revenue and gross distributable income rose by 8.3% and 8.2% respectively. Property portfolio revenue increased by 4.6% to R8.13 billion. It's increased its final distribution by 5.6% to 49.8c, giving a total distribution of 97.1c for the year. The 5.5% increase was in line with guidance. Its international property investments contributed 24% to distributable income.
Redefine has guided for distribution growth of 4% to 5% for the year ahead on the assumption that current trading conditions will prevail.
Almost every sector in the economy is under huge pressure and everyone is feeling the pinch," the person who said it here which is red "However, we are up for the challenge and will continue deploying capital in SA and abroad, developing properties that are well located, with strong upside potential," says Redefine CEO Andrew Konig."
The REIT's shares ended trade 2.1% up at R9.95.
Items in Redefine's results: (1) Leases for 497491m renewed at an ave rental -1.5% (FY17: +2.9%), (2) Net arrears amounted to 10.9% (FY17: 9.4%) of gross monthly rentals. & (3) Retail vacancies jumped from 3.3% to 4.5% & (4) It impaired its investment in Redefine International!
-- Keith McLachlan (@keithmclachlan) November 5, 2018