Given the renaissance in demand for regional property assets, Redefine's share price premium over forecast net asset value looks justified. It's also worth pointing out that at 6.2 per cent rising to 6.4 per cent in 2015, the prospective dividend yield is one of the highest in the sector. So, with rental income and property values both set to grow, together with the dividend, shares in Redefine present a compelling case for growth and income seekers
16 Mar '14
Rental income is also expected to rise as more refurbishments start to contribute to the bottom line. At St Georges in Harrow, the final refurbishment is expected to be completed by Easter this year, while a 50,000 sq ft extension at Birchwood in Warrington has now been completed. However, while consumer sentiment is clearly improving, footfall remains in decline, and Redefine believes a full recovery will not return until consumers experience real wage growth. The company also has a stake in Australian-based Cromwell Property, and while its performance has been solid enough, Redefine's exposure is unhedged, and the Australian dollar has declined by nearly 6 per cent since last August. Sensibly, Redefine sold a further 8.46m shares in December, taking its stake down to 13.2 per cent. Group net asset value in the short term could also come under pressure from weakness in the euro, with the group's shopping centres and government-let offices in Germany and the Netherlands accounting for around 16 per cent of gross rental income. Group finances have been boosted by a placing at 47.5p last month, expanded due to strong demand from 7.5 per cent to 9.9 per cent of the share capital, raising £54.7m before expenses and priced at a 6.4 per cent discount.
16 Mar '14
A lot can change in six months, and for property group Redefine International (RDI), most of the changes have been for the good. Of primary importance is the shift in investor demand to beyond the confines of the expensive London property market and into secondary assets situated elsewhere. The obvious reason for this is that yield compression in London to 3-4 per cent makes it sensible to look at quality regional assets offering double this. Happily, Redefine is now better-placed to take advantage of the trend, having spent a long time restructuring itself, which includes becoming a real-estate investment trust (Reit) in December last year, achieving a dual listing on the Johannesburg Stock Exchange, and launching an American Depository Receipt programme (ADR) to accommodate overseas investment demand for UK real estate. As demand pushes up property prices, management expects half-year figures towards the end of April to see an encouraging revaluation of the portfolio, which, according to broker Peel Hunt, is 56 per cent located in the UK by value, 29 per cent in Europe and 14 per cent through a holding in an Australian company. Together with the restructuring, this is expected to reduce the loan-to-value rate from 82 per cent in August 2012 and 57 per cent last August to nearer the 50 per cent target. And to take advantage of the uptick in regional valuations, the group has been working its portfolio hard by recycling capital into income-generating investments. Redefine bought a lot of property during the financial crises and is now set to benefit as some of the return on these investments is crystallised. Most recently, two adjoining sites in Harrow were sold to Redrow Homes (RDW) for £13.8m, which works out at a 12.4 per cent premium to book value, and the group has also secured a share of sales revenue above an agreed aggregate threshold. More sales can be expected, too, assuming an acceptable rate of return on book value. Redefine has also been busy adding selected properties to the portfolio. For example, the group spent £84m on the 305,000 sq ft Weston Favell enclosed shopping centre on the edge of Northampton, reflecting a net initial yield of 7.5 per cent. Crucially, the centre is anchored by one of the largest Tesco supermarkets in the UK, occupying just under half the retail space, and with a 14-year unexpired lease. And there are signs of an improvement in rents, too, with a rental review uplift at Newington House in Southwark, for example, resulting in a 5 per cent rise in rent to £807,520 a year.
7 May '13
Mother comp is Redefine Properties listed on JSE as RDF -massive comp: "Property Loan Stock company, with a diverse range of property assets under management valued, as at 31 August 2012, at over R39 billion." http://www.redefine.co.za/ Been breaking for past 5 weeks and still going strong http://screencast.com/t/VygP8afysh Then you get its subsidiary Redefine International listed on JSE as RIN with its sole holding in LSE listed RDI: "Redefine Properties International Limited ("RIN") is a Redefine subsidiary formed to house the Group's offshore real estate portfolio. RIN was listed on the JSE in September 2010 and holds as its sole asset, a majority stake in London listed Redefine International PLC." http://www.redefine.co.za/international.php Over the past year they've struggled a bit to get their debt structure sorted, but now they're poised for growth. Well worth a read: http://dashboard.fin24.com//Company/Redefine-Properties-International-Ltd So I've been watching RIN since end of March and bought in on JSE last week based on the above fundamentals, but mainly on the Ascending Triangle- price was right at the start of the breakout wave, wave E. And what do you know- it's breaking now.. ) http://screencast.com/t/vRKdAJhVc > http://screencast.com/t/jNuiMRx7 Exact same thing happening on LSE with RDI http://screencast.com/t/IO4xMOm5yGQ So yes, based on the performance of the mother comp together with RDI's positioning now- I think the sp has got some legs in it.
28 Feb '13
Today's RNS £65m = 6.75pps
At the annual general meeting of the Company held on 23 January 2013 a resolution was passed approving the reduction of the share premium account of the Company amounting to £65million, subject to the confirmation of the Isle of Man ("IOM") High Court (the "Order"). Redefine International is pleased to announce that the IOM High Court has now granted the Order approving the reduction and the Order has been registered with the IOM Companies Registry. The reduction has therefore become effective and an amount of £65 million has been transferred from the Company's share premium account to its distributable reserve and will provide further flexibility for the Company's financial structure.
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