Redefine Properties have posted their annual results for the year ended August 2024, reporting a 57% increase in their headline earnings per share to 33 cents (August 2023: 21 cents). The Group’s basic earnings per share also increased to 58.79 cents, up from 21.42 cents.

With property assets under management of R99.6 million, most of the REIT’s SA operating metrics either stabilised or improved. Occupancy rates increased to 93.2%, up from 93% in FY2023 with tenant retention nearing 90%.

The Group reported an overall improvement in its SA renewal reversions, now at -5.9%, up from -6.7% in FY2023, primarily driven by its retail and industrial portfolios. While its retail assets continue to perform well with occupancy rates for FY2024 rising to 95% (FY2023: 93.6%), its industrial portfolio benefited from long leases with renewal reversions increasing by 5.5% during the period.

Redefine achieved distributable income per share of 50.02 cents with its net operating income in its SA portfolio increasing by 5.2% to R4.967 billion. However, the solid operational results were offset by net finance charges increasing by 15.1% to R1.2 billion.

In Poland, EPP’s core portfolio achieved an occupancy rate of 99% (FY2023: 98.4%) with renewal reversions turning positive at 0.2% (FY2023: -7.2%). ELI, Redefine’s Polish logistics platform, has an occupancy rate of 93.4%, and the 62 601m² of developments completed during the period are fully occupied.

The EPP core portfolio delivered net property income of R1.3 billion, up from FY2023’s R1.2 billion which was primarily driven by rental indexation and increased occupancy levels.

During the period, Redefine achieved a significant milestone with its R27.7 billion common debt-security structure. The substantial refinancing completed in FY2024 has resulted in a low-risk debt maturity and the REIT says that during FY2025 and FY2026, no more than 10% of group debt will be maturing, with access to liquidity of R4.8 billion.

Redefine’s SA REIT loan-to-value (LTV) ratio for FY2024 stood at 42.3%, slightly exceeding its target range of 38% to 41% with the acquisition of the Mall of the South contributing 1.1%.

The REIT recorded a 7.5% increase in its revenue to R10.66 million (August 2023: R9.9 million) with its SA REIT net asset value (NAV) per share increasing to 788.28 cents.

Redefine’s Board declared a dividend of 22.25 cents per share for the six-month period, representing a 90% dividend payout ratio.