Redefine Properties has posted its financial results for the six months ended February 2025, reporting improved profitability across all regions, driven by higher occupancy levels and “disciplined cost management”.

The REIT’s group-wide net operating profit margin rose to 76.9%, up from 76.5% in the comparable period, with SA at 79.1% and EPP core (Poland) at 77.2%. EPP’s core occupancy reached 99.2% while SA’s occupancy also showed steady improvement.

Redefine’s CEO Andrew König describes the period as a “game of snakes and ladders”, shaped by successive global shocks, interest rate hikes, and more recently, trade tensions. “These disruptions have heightened uncertainty, undermining capital market stability and unsettling business confidence that property cycles rely on.”

During the half-year period, Redefine’s loan-to-value (LTV) ratio improved to 41.2% with a key contributor the ongoing simplification of its Polish JVs – a strategic priority aimed at lowering LTV, reducing equity risk, and alleviating high finance costs, says the Company.

Redefine successfully refinanced the majority of its R3.5 billion in maturing debt in FY2025, with only R500 million remaining. The Company’s liquidity position improved to R6 billion from R4.8 billion at 31 August 2024, with reserves to cover maturities through to 2026.

CFO of Redefine, Ntobeko Nyawo, says that 77.6% of the REIT’s total debt is hedged for an average tenor of 1.1 years and the maturity weighted average term of debt is healthy at 3.4 years. Moody’s reaffirmed Redefine’s Ba2 rating with a stable outlook, supporting continued access to debt capital markets.

In South Africa, Redefine’s overall portfolio occupancy improved to 94.7% with its industrial portfolio achieving a 1.1% vacancy, lease renewal reversions of 4.6% and high tenant retention. Its retail portfolio also showed a positive turnaround, recording the first positive lease renewal reversion in over three years (0.4%).

Its office portfolio, however, remains a challenge due to national oversupply and constrained rental growth but that nodes like Rosebank and parts of the Western Cape are seeing strong demand for P-grade space.

In Poland, Redefine’s EPP core retail platform maintained an occupancy of 99.2%, with a rent-to-sales ratio of 9.1%.

Redefine’s Polish logistics platform (ELI), co-owned with Madison, is progressing with a planned portfolio division and revised shareholders agreement, which is expected to be finalised by June. Vacancies in this portfolio is projected to decline from 6.6% to 3.5% by June 2025.05.12

In addition, Redefine is advancing its self-storage platform in Poland, with 10 000m² of net lettable area currently under development and 38 000m² under consideration. The initial €50 million equity commitment is being deployed into these developments, and the company is actively seeking a co-investment partner to match this with an additional €50 million in capital.

Redefine has reaffirmed its distributable income per share guidance of 50 – 53 cents for the period with the expectation of maintaining a dividend payout ratio within the 80 – 90% range.