RDI.L Share News (RDI)

(ShareCast News) - Income-focused real estate investment trust Redefine International posted impressive earnings growth in its interim results on Tuesday, along with a modest increase in its portfolio value.The FTSE 250 firm reported an 18.7% increase in earnings available for distribution during the period - to £25.4m, from £21.4m a year earlier.Its portfolio valuation increased 1.0% on a like-for-like basis, while the net asset value per share of 40.9p was a decrease of 1.9% from 41.7p a year earlier, primarily due to the one-off impact of the AUK portfolio acquisition costs.Redefine's pro-forma loan-to-value ratio was 52.5% at period end, compared with 51.8% at the end of August 2015.The company also managed to reduce its weighted average cost of debt by 30 basis points to 3.6% during the six months."Over the past 10 years Redefine International has transformed into an established FTSE 250 REIT with a market capitalisation in excess of £800m.," said chairman Greg Clarke."The focus of the last six months has been on completing the £490m AUK portfolio acquisition and commencing income enhancing asset management initiatives."This off-market acquisition has brought the value of the Company's assets to in excess of £1.5 billion and is a demonstration of management's ability to source, secure and effectively execute high quality transactions," Clarke explained.He said he was extremely pleased with the support received from both existing and new shareholders during the capital raise in February to part-fund the AUK transaction."Given the prevailing volatile capital markets, this is testament to the progress the business has made in reshaping its portfolio and capital structure," Clarke said.Redefine chief executive Mike Watters said that, with the completion of the second tranche of the AUK transaction on 1 March, the company now has a significantly better portfolio underpinned by strong underlying property fundamentals, from which the company can ultimately produce better quality income."We are confident that our portfolio is now in a robust position from which we can continue to deliver on our commitment to grow income as the property cycle advances," he commented.Watters said further progress has been made in strengthening Redefine's balance sheet and reducing the cost of debt as well.Redefine's board announced an interim dividend of 1.625p per share - an increase of 1.6%.