Redefine Properties has published its pre-close investor update for the year ending 31^st of August 2025, updating its distributable income per share (DIPS) guidance to between 51.5 cents and 52.5 cents per share for FY2025 due to improved operating margins and stronger occupancy levels.

“Over the past year, each time we thought the skies were clearing, a new dark cloud appeared. But those clouds have dissipated and today, Redefine is in a better shape than at the start of the year,” says CEO of Redefine Properties, Andrew König. “Despite volatility, our diversified platform has absorbed shocks with minimal disruption, underscoring the strength of our business.”

CFO of Redefine Properties, Ntobeko Nyawo, says that the REIT is on track to deliver a net operating profit margin of 77% by yearend, up from 75% in 2024 with recurring income now making up 99.8% of total earnings.

“The upgraded DIPS guidance reflects not only improved leasing and occupancy levels, but also the impact of cost efficiencies, lower funding costs, and proactive debt management,” notes Nyawo.

The REIT’s South African portfolio continues to deliver stable growth says Redefine Properties’ COO, Leon Kok. Retail tenant turnover increased nearly 5%, supported by similar trading density growth, strengthening tenants’ ability to absorb rental escalations with renewal reversions and occupancy levels continuing to improve.

Redefine Properties’ industrial portfolio has sustained demand for modern logistics facilities with its office portfolio showing signs of recovery. Renewal activity for its office assets has stabilised, particularly in its P-grade buildings.

In Poland, the REIT’s retail portfolio continues to perform strongly with occupancy levels remaining high at 97.9% and rental collections of 99%. While footfall was down, like-for-like turnover for its Polish retail assets increased 2%.

Redefine Properties’ logistics platform (ELI) has performed well since its split from Madison International Realty, says the Company, with reduced vacancies from 6% to 3%, delivering 6.3% rental growth on renewals and maintaining a robust weighted average lease term of 5.1 years.

Its self-storage expansion continues, with a new development in Kraków and two more underway in Warsaw and Gdańsk, which will add nearly 28 000m² of institutional-grade capacity.

The REIT has R7.6 billion in cash and undrawn facilities with its weighted average cost of debt having reduced to 6.6%. Its loan-to-value (LTV) ratio has improved to within the 38% to 41% target range.

“We are encouraged by South Africa’s expected removal from the FATF greylist in October and we remain hopeful for an S&P sovereign credit rating upgrade in 2026, while interest rates have settled at long-term averaged, providing stability after a period of steep hikes,” says König.

“Momentum is translating into tangible results. In real estate, progress can be slow, but once it builds, the benefits snowball – and that’s what we’re starting to see. With operational momentum, financial discipline, and supportive macro conditions, Redefine Properties is well placed to continue delivering sustainable growth into the medium term.”