Redefine International Raises Dividend on better Portfolio.
Category Property Fund News
By Joan Muller After an extensive restructuring‚ rand-hedge property counter Redefine International (RPL) has made a welcome return to dividend growth. The company‚ which owns a £1bn (about R17.5bn) portfolio of hotels‚ offices and shopping centres in the UK‚ Germany and Australia‚ Wednesday declared a final dividend of 1.7p‚ which‚ with its 1.5p interim dividend‚ took its total for the year to end-August to 3.2p. That represents a year-on-year increase of 2.9%‚ a turnaround from a year ago when dividends dropped by 29.3% after an extra 388.5-million shares were issued during the 2013 financial year. Management‚ under the leadership of former South African Mike Watters‚ reported a hefty 68% increase in net profit and a 30% increase in earnings. Mr Watters said on Wednesday that the strong set of results could be ascribed mainly to new acquisitions and the sale of noncore assets‚ which had significantly improved the quality of the portfolio. Recent additions include four German shopping centres and the Weston Favell Shopping Centre in Northampton‚ England. The Edinburgh Doubletree by Hilton hotel was bought for £25.3m. Mr Watters said it had been a busy year in corporate action. “We successfully converted to the UK real estate investment trust (Reit) structure‚ the corporate structure was simplified to allow the company to relist as a secondary inward listing on the JSE‚ management was internalised and the board and the management team was strengthened.” Redefine International gained inclusion in the prestigious FTSE 250 from May this year‚ which has placed the counter on the radar of more European fund managers. “The FTSE 250 inclusion is a massive step up for the company as UK institutional investors are already taking us a lot more seriously.” Mr Watters said the company’s market capitalisation could increase from just less than £700m to at least £1bn over the next two years. “If we can achieve that we could be placed among the FTSE’s top 10 largest Reits‚ which will make us a serious player in the UK property market.” While the property investment market had become very competitive‚ with plenty of money from Chinese‚ Singaporean and Canadian pension funds chasing deals in the UK and Europe‚ he said there was still good value to be had. “Besides we have built a track record in finding good deals since we listed in London in 2006.” Analysts said on Wednesday that Redefine International surprised the market with better than expected results. ClucasGray fund manager Brendon Hubbard said it was one of the easiest ways for investors in SA to access the UK property market.
Author: Redefine Propery Management
