Redefine Properties has reported a 4.2% increase in Group revenue to R11.1 billion for FY2025, with its net property income having increased by 4.1% to R6.6 billion.

“Redefine ends the financial year in far better shape than we started it, with all key metrics trending positively,” says CEO, Andrew König.

The Company’s Funds from Operations (FFO) increased by 5.7% to R3.7 billion (FY2024: R3.5 billion) with its distributable income having increased by 7.8% to R3.6 billion compared to R3.4 billion in the prior year.

The REIT’s diversified portfolio currently valued at R103.2 billion (FY2024: R99.6 billion) comprises it’s SA assets currently valued at R66.8 billion (FY2024: R64.7 billion) with its offshore assets in Poland currently valued at R36.4 billion (FY2024: R34.9 billion) making up 35.3% of its total assets.

In South Africa, revenue increased by R299.8 million (3.6%) driven by acquisitions, new developments coming online, “healthy” in-force lease escalations, and improved letting activity with the increase offset by negative renewal reversions in its office portfolio and the disposal of non-core assets. Its net operating property income margin (net of recoveries) improved to 84.5% (FY2024: 84.1%).

The portfolio recorded an improved vacancy rate of 6.5% (FY2024: 6.8%) mainly due to improved occupancies in its industrial portfolio which was marginally offset by higher vacancy rates in its retail and office portfolios. Leases covering 460 479m² were renewed during the period, increasing its tenant retention rate by GMR to 91.8% (FY2024: 89.4%) with a further 377 087m² let to new tenants across the different segments.

Operating metrics in its retail portfolio improved with net property income growth of 5.7% (FY2024: 6.4%), driven by stable in-force lease escalation rates of 5.9%, an improvement in the average renewal reversion rate to 1% (FY2024: 0.2%) on 17.1% of its occupied retail GLA, a tenant retention rate by GMR of 92.6% (FY2024: 91.2%) and decreased net electricity costs driven by additional solar capacity coming online during the year. Vacancies in its retail assets increased marginally to 5.9% (FY2024: 5%).

Redefine’s office portfolio recorded an increased vacancy rate to 13% (FY2024: 11.2%) with the segment’s net property income decreasing by 8.9% (FY2024: -3.1%) driven by a negative rental renewal reversion rate of -12.9% (FY2024: -13.9%) on 17% of its occupied GLA.

Redefine’s ‘Talis’ portfolio comprising primarily government-tenanted office assets, reported an improved vacancy rate to 23.3% (FY2024: 29.8%) with an increase in net property income of 5.3%.

Its industrial portfolio recorded net property income growth of 12.3% (FY2024: 4.2%), underpinned by stable lease escalation rates of 6.5% and an average renewal reversion rate of 0.8% (FY2024: 5.5%) on 8% of its occupied industrial GLA. The segment’s vacancy rate improved to 2.7% (FY2024: 5.5%).

Net finance costs in its local portfolio decreased during the year, driven by a lower weighted average cost of debt of 8.9% (FY2024: 9.2%).

During the period, Redefine disposed of 11 assets with a GLA of 120 461m² for an aggregate consideration of R975 million, five portions of vacant land for a total consideration of R71.7 million and 47 residential units at Park Central for a total consideration of R87.3 million. Agreements subject to conditions precedent have been concluded to dispose of an office property and further residential units at Park Central for an aggregate consideration of R62.5 million.

Its Board declared a dividend of 25.42 cents per share for the year ended 31^st August 2025, representing a 90% payout ratio and bringing the full year dividend payout ratio to 87.5%.

Redefine’s loan-to-value (LTV) ratio improved from 42.3% to 40.6%.