Redefine Properties has declared a distribution of 11,75 cents per linked unit for the two months ended 31 August 2009, representing consolidated earnings for Redefine, incorporating ApexHi and Madison.
Redefine CEO Wolf Cesman says the distribution of 11,75 cents per linked unit is marginally higher than the forecast 11,7 cents as contained in the revised listing particulars issued in March 2009.
The total distribution for the year to 31 August 2009 amounts to 56,55 cents per linked unit, a marginal decrease on the total distribution of 56,63 cents for the previous year.
Redefine's total return of 13,9% outperformed the total return of the SA Listed Property Index (SAPY) (12,7%) and the All Share Index (Alsi) (-6,8%) over the same period.
Subsequent to the merger, Redefine has been included in the Global Property Research (GPR) 250 Index and the Mid Cap segment of the MSCI Global Standard Index.
At 31 August 2009, the Redefine property portfolio comprised 403 properties with a total gross lettable area of 3,6-million m2 valued at R18,2-billion. "The substantial increase in the size of the portfolio is a consequence of the merger with ApexHi. This has also resulted in a more balanced split between office (39%), retail (35%) and industrial (26%) properties, and a spread of properties throughout all nine provinces in South Africa," says Cesman.
Total vacancies are 8,5% of the total portfolio - made up of office 10,8%, industrial 7,2% and retail 6,9% - which is in line with market conditions and represents upside income potential.
The listed securities portfolio is valued at R2,8-billion and constitutes 13,3% of Redefine's investment in property and listed securities at 31 August 2009. Redefine increased its stake in Hyprop Limited to 33,3% during the year under review. Redefine owns 26,4% of Oryx Properties Limited, listed in Namibia and 3,2% of Sycom Property Fund.
Redefine's offshore listed investments comprise 28,6% of CIREF PLC and 10,6% of Wichford PLC. Redefine announced its intention to house its existing and future offshore investments in CIREF PLC to be renamed Redefine International which will be listed in London and Johannesburg.
Cesman says the management of Redefine, ApexHi and Madison has been successfully integrated and is committed to achieving sustained growth in distributions for unitholders.
"Savings in property management and administration expenses and interest on borrowings may take longer to realise than was originally anticipated, and together with the effects of the global economic recession, the board anticipates that the total distribution for the year ending 31 August 2010 will be between 68 cents and 71 cents per linked unit, an increase of between 20% and 25% on the distribution for 2009," he says.