Wrap Text
Group audited annual results for the year ended 31 August 2024 and prospects for the year ending 31 August 2025
REDEFINE PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1999/018591/06)
JSE share code: RDF ISIN: ZAE000190252
Debt company code: BIRDF
(Approved as a REIT by the JSE)
("Redefine" or "the company" or "the group")
GROUP AUDITED ANNUAL RESULTS FOR THE YEAR ENDED 31 AUGUST 2024 AND
PROSPECTS FOR THE YEAR ENDING 31 AUGUST 2025
HIGHLIGHTS
- Property assets under management of R99.6 million
- SA REIT NAV per share increased to 788.28 cents
- SA REIT loan-to-value of 42.3%
- Dividend per share of 42.52 cents
- Group net operating margin of 75.1%
- Weighted average debt margin decreased by 32bps to 182bps
FINANCIAL RESULTS
31 August 31 August %
2024 2023 change
Revenue (R' million) 10 656 9 908 b 7.5
Headline earnings per share ("HEPS") (cents) 33.06 21.01 57.3
Basic earnings per share ("EPS") (cents) 58.79 21.42 > 100%
Distributable income per share (cents) 50.02 51.53 (2.9)
Dividend per share (cents) 42.52 43.80 (2.9)
SA REIT NAV per share (cents) 788.28 765.95 2.9
DIVIDEND FOR THE SIX-MONTHS ENDED 31 AUGUST 2024
The board declared a dividend of 22.25110 cents per share for the six-month period ended
31 August 2024, which represents a dividend payout ratio of 90%.
Eligible shareholders will be entitled, to re-invest the cash dividend in return for Redefine shares
("share re-investment alternative"). A circular in this regard will be distributed to shareholders
on or about Friday, 8 November 2024.
A detailed announcement relating to the dividend and to the share re-investment alternative,
including salient dates and the tax treatment applicable to the dividend and the share re-
investment alternative, will be published on or about Friday, 8 November 2024.
PROSPECTS
The fortunes of commercial real estate are inextricably tied to confidence and interest rates.
Confidence is being restored on the back of lower political uncertainty, improved electricity
supply, and progress made in implementing broader institutional and economic reform
programmes to address long-standing constraints. The positive shift in confidence is playing out
in the stabilization and, in some cases, improvement of operational performance indicators
across all property sectors. Monetary policy has taken a dovish turn during September, which
heralds the start of an interest rate easing cycle.
With confidence and interest rates working in tandem, bond yields are lower and REIT share
prices are higher, which bodes well for accessing the equity market or using scrip as settlement
currency and is supportive of further improvements to property fundamentals.
Coming off a prolonged trough, we can look forward to an upward property cycle in FY25, which
will be gradual as the lingering effects of elevated interest rates are worked off, and spiralling
tensions in the Middle East could disrupt the inflation glide path. As we journey to a normalised
operating context, we will continue to focus on the variables under our control through living the
upside, where we actively seek to create a window of opportunity in every challenge to reimagine
and rebuild Redefine.
Although we operate in a highly uncertain environment, we are expecting distributable income of
50.0 to 53.0 cents per share for FY25 (FY24: 51.53 cents per share). We anticipate applying a
consistent dividend payout ratio of 80% to 90%, dependent on operational capital expenditure
requirements, liquidity events, and tax considerations.
This forecast is predicated on the assumption that current trading conditions will prevail. Forecast
rental income is based on contractual terms and anticipated market-related renewals. The
forecast has not been reviewed or reported on by the group's independent external auditors.
Redefine's use of dividend per share as a relevant measure of financial performance remains
unchanged
By order of the board
Redefine Properties Limited
4 November 2024
Independent non-executive directors:
SM Pityana (chairperson)
ASP Dambuza
C Fernandez
D Radley
LJ Sennelo
NB Langa-Royds
S Fifield
Executive directors:
AJ Konig (Chief executive officer)
LC Kok (Chief operating officer)
NG Nyawo (Chief financial officer)
Registered office and business address:
155 West, 4th floor, 155 West Street, Sandown, Sandton
Johannesburg, South Africa, 2196
PostNet Suite 264, Saxonwold,2132
Transfer secretaries:
Computershare Investor Services Proprietary Limited
Sponsor:
Java Capital
Company secretary:
A Matwa
Independent auditors:
PricewaterhouseCoopers Inc.
http://www.redefine.co.za
The contents of this announcement are the responsibility of the board of directors of Redefine.
This announcement is only a summary of the information contained in Redefine's group audited
annual financial statements for the year ended 31 August 2024 ("2024 AFS") and does not
include full or complete details.
Redefine's 2024 AFS have been released on SENS and are available on the JSE website at:
https://senspdf.jse.co.za/documents/2024/jse/isse/RDF/FY2024.pdf and on the company
website at https://www.redefine.co.za/view-file/2024-afs.pdf.
The 2024 AFS have been audited by PricewaterhouseCoopers Inc., who expressed an
unmodified opinion thereon. A copy of the auditor's report, together with the accompanying 2024
AFS are available on the Redefine website and available for inspection at Redefine's registered
office. The 2024 AFS contain a restatement relating to the maximum credit risk exposure for
FY23 which incorrectly excluded the credit exposure relating to derivative assets and other
financial assets and included the straight-line rental income accrual which is not a financial
instrument. The balances have been restated to correctly include group and company assets
that have exposure to credit risk. The restatement has no impact on the primary financial
statements of the EPS and HEPS of the group.
Copies of the 2024 AFS may be requested via email to cosec@redefine.co.za or
sponsor@javacapital.co.za. Any investment decision should be based on the 2024 AFS
published on the company's website.
Redefine's summary of audited group results for the year ended 31 August 2024, which includes
directors' commentary, has been published on the company's website at
https://www.redefine.co.za/view-file/2024-results.pdf.
Date: 04-11-2024 08:00:00
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