RDI.L Regulatory News (RDI)

REDEFINE INTERNATIONAL P.L.C.

("Redefine International" or the "Company" or the "Group")

 (A UK-REIT incorporated in the Isle of Man)

(Registration number 010534V)

LSE share code: RDI

JSE share code: RPL

ISIN: IM00B8BV8G91

RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2015

PORTFOLIO STRATEGY DELIVERS CONTINUED INCOME GROWTH

Redefine International, the FTSE 250 income focused UK-REIT, which has a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange, today announces its results for the six months ended 28 February 2015.

1. Includes share placement at a 30.3% premium to the Adjusted NAV post the period end

2. Excluding non-core assets and debt and adjusted for post period end capital raise

3. Excludes net capital raising proceeds of £70.0m post period end

Financial

· Earnings available for distribution £21.4m (28 February 2014: £17.9m), an increase of 19.6%

· Interim dividend 1.60p per share (28 February 2014: 1.50p per share), an increase of 6.7%

· Weighted average earnings available for distribution 1.63p per share (28 February 2014: 1.55p per share)

· Basic earnings per share 2.70p (28 February 2014: 0.08p loss)

· Adjusted NAV per share 41.31p (31 August 2014: 40.54p), an increase of 1.9%

· Pro-forma Adjusted NAV (post capital raising) 42.40p (31 August 2014: 40.54p), an increase of 4.6%

· Balance sheet strengthened with pro-forma Group LTV reduced to 45.1% (31 August 2014: 48.1%)

· Cash balances of approximately £72.5m available for investment following proceeds of post period end capital raise, Delta acquisition and committed transactions

Operating

· Significant progress on development and asset management initiatives

· Occupancy remains high and stable at 97.6% (31 August 2014: 97.6%)

· Agreement for lease signed with Primark to develop a new 5,200 sqm store, in Ingolstadt, Germany

· Acquisition of German retail portfolio valued at €156.8m in joint venture with Redefine Properties

· Acquisition of DoubleTree Hilton hotel in Edinburgh for £25.3m

· Acquisition of a further 44.9% interest in the Premium portfolio for €3.6m (£2.8m)

· Sale of COOP portfolio (Switzerland) exchanged for CHF 36.0m (£24.5m)

· Legacy non-core asset disposals now largely completed

Corporate

· Successful equity placement raising gross proceeds of £70.9m post period end

· Board strengthened with appointments of Elisabeth Stheeman and Robert Orr as non-executive directors

Greg Clarke, Chairman, commented:

"Following another busy period, today's results represent a solid step forward for the Company and demonstrate further progress in its aim to be a stronger, more resilient business focused on increasing returns to shareholders. Earnings available for distribution have grown by almost 20% and, with that, we have been able to increase the interim dividend by 6.7% to 1.60p per share. The pro-forma LTV has been further reduced and, following the recent successful capital raise, Redefine International is in good shape to pursue its investment strategy and to further drive portfolio performance against an improving economic backdrop."

Mike Watters, Chief Executive, commented:

"The review period has again been characterised by high levels of activity across all areas of our business as we continue to strengthen the asset base and key drivers underpinning our progressive dividend policy.

"A number of refurbishment and development projects have improved existing assets, while significant acquisitions have expanded the portfolio, in-keeping with our focus on the core retail, commercial and hotel real estate sectors in the UK and Germany. In addition, we have taken advantage of the strong investment market to dispose of non-core holdings.

"The delivery of sustainable and growing long term income through innovative capital and asset management, facilitated by capital recycling, remains our core objective. Our emphasis on building strong management teams to extract maximum value from our asset base is also paying off. In an era of a seemingly limitless supply of capital, we have to remain highly energised to stay ahead of the competition and we are confident that we are in a strong position to do so."

Meeting, webcast and conference call

A meeting for analysts and investors will take place today at 09.00 (UK local time) at FTI Consulting, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD. The meeting can also be accessed via a conference call dial in facility and webcast link, starting at 09.00am (UK time) 10.00am (SA time), using the details below. The presentation will be made available on the Company's website http://www.redefineinternational.com/investor-relations/financial-reports.

Conference call

Dial in numbers: United Kingdom Local +44(0)20 3427 1912 and South Africa Local +2711 019 7075

Confirmation Code: 9293328

Webcast link: http://webcasting.brrmedia.co.uk/broadcast/137022

For further information, please contact:

Business Review

Delivering on our strategy

We are focused on providing sustainable and growing income returns to shareholders. The portfolio is continually being repositioned to recycle capital into assets where we see value, and to maintain a property portfolio that provides a balance between defensive investments and assets that can be improved or repositioned with active asset management.

The business has been transformed in recent years to:

· Enhance the quality of the portfolio;

· Provide a transparent corporate structure;

· Attract a diverse shareholder base resulting in improved liquidity;

· Significantly reduce leverage, and

· Extend the debt maturity profile.

The actions we have taken have provided a better quality, more resilient portfolio together with a lower risk capital structure.

Secure income

Our tenants provide a diverse source of high quality income backed by strong covenants. Over 68% of gross income is derived from foodstores, national retailers and companies, discounters, DIY stores and government bodies.

Notes

· Figures reflect the Group's share of joint ventures

· Figures exclude the Group's investment in Cromwell

· Excludes non-core assets

Exposure to different sectors and geographies

Our portfolio is diversified by sector and geography but is consistent in its focus on income. Over 40% of the portfolio by value is located in London and the five largest German cities.

Income focused asset management

As an income focused business, we manage all aspects of our revenue and costs at both a property and corporate level in order to maximise income available for distribution. We are focused on a number of areas to drive net income growth, including:

Capturing rental growth from improving occupier markets

The recent improvement in occupier markets across a number of the sectors in which the Group operates is providing increasing support for rental growth.

Discount and convenience retailing is one sector in particular that remains on a growth trajectory with operators such as B&M Bargains, Home Bargains, Poundland and Iceland looking to expand their UK footprint. We are seeking to capture demand for space and rental growth through the provision of new space at our convenience retail centres, such as the planned further £5.0m extension at Birchwood, Warrington.

Improving regional office market dynamics resulting from of a limited supply of Grade A space, the removal of significant amounts of tertiary stock through residential and student accommodation conversions and improved economic prospects have created opportunities to reinvest within our portfolio at marginal returns in excess of what can be achieved in the investment market. A planning application to redevelop the entrance and provide new tenant amenities has been submitted for the 88,000 sqft Crescent Centre in Bristol. Rental levels of £13 - £15 per sqft are being targeted post refurbishment from the current average level of £11.40 per sqft.

Creating new income streams

Ongoing improvements in our markets are creating demand-led opportunities to develop new retail space at a number of our convenience led retail schemes. Developments detailed below at Birchwood, Seaham and Weston Favell are all creating additional space for existing or new tenants.

The strength of the London limited service hotel market continues with PwC forecasting RevPAR growth in London of 5.1% in 2015. A further 21 hotel rooms are to be developed for Travelodge at Enfield and planning for a further 12 bedroom extension to the Holiday Inn Express, Southwark has been approved. Consideration is also being given to the addition of between 50 and 80 bedrooms to the Holiday Inn Express at Royal Docks.

Investment activity

We remain opportunistic in terms of new investments and are continually looking to acquire real estate assets with strong fundamentals and the ability to generate long term income streams with potential for growth. We continue to identify opportunities to make earnings accretive acquisitions with the potential for capital growth through asset management.

Uncommitted cash balances of approximately £88.2m were available to invest following the capital raising post period end, of which £15.7m was utilised to acquire the final three office assets in the Delta portfolio.

Acquisitions of properties with a value of £142.5m (excluding acquisition costs) were completed during the period. In addition, a further 44.9% interest was acquired in the Premium portfolio for €3.6m.

German retail portfolio

The Company completed the acquisition of 56 German retail properties in joint venture with Redefine Properties in February 2015. The €156.8m market value of the properties reflected a net initial yield of 7.5%. The €100.0m of existing bank debt secured against the properties is to be refinanced at approximately 50% LTV and post refinancing is expected to produce a yield on equity in excess of 11.0%.

The portfolio totals over 128,000 sqm of lettable area and comprises a mix of stand-alone supermarkets, foodstore anchored retail parks and cash and carry stores. The properties are well located within their respective micro markets, with 85% of the total annual rental income located in western Germany and Berlin and the remainder in eastern Germany. Key portfolio attributes include:

· Gross rental income of €12.6m with a WAULT of 10.3 years

· Portfolio occupancy of 99.2% by area

· 100% of gross rental income is subject to indexation of between 65% - 75% of German CPI

· Edeka, Netto, Rossmann and Real account for over 90% of gross rental income providing strong tenant covenants

The portfolio provides exposure to high quality, secure, indexed-linked cashflows with opportunities to extend existing stores and re-gear leases.

Redefine International will manage the portfolio in return for a management fee of 0.375% of Redefine Properties share of the portfolio's gross asset value. The transaction is Redefine Properties' first direct investment in Europe and allows Redefine Properties to benefit from Redefine International's experienced European asset management team.

DoubleTree by Hilton Hotel, Edinburgh

This 138 bedroom hotel was acquired in September 2014 for £25.3m (excluding acquisition costs of £1.6m) reflecting a net initial yield of 6.9%. The hotel was extensively refurbished and rebranded prior to acquisition and provides high quality flexible accommodation suited to both business travellers and tourists. The hotel was and will continue to be managed by RedefineBDL, the Company's 25.3% associate. Since acquisition the hotel has traded in line with expectations.

Premium portfolio, Germany

During the period, the Company acquired an additional 44.9% interest in the Premium joint venture for an equity consideration of £2.8m. The portfolio has a current market value of €33.6m (£24.4m) reflecting a net initial yield of 6.9%.

Delamere Place, Crewe

On 21 April 2015, the Company exchanged contracts to dispose of Delamere Place, Crewe for a net amount of approximately £5.5m. The asset was revalued to £5.5m in the current period.

Delta portfolio

The Company exchanged contracts to acquire the final three office assets in the Delta portfolio from the current security pool for approximately £15.7m post period end. The net proceeds will be utilised to repay the existing Delta facility. The acquisition price reflected a net initial yield of 13.0%.

A number of asset management opportunities exist to create value from these high yielding assets including:

· Edgbaston - the potential to convert the existing 46,000 sqft office building to residential or hotel use;

· Leeds - advanced discussions are in progress with the Home Office to regear the lease over 36,000 sqft for a term of four years; and

· Plymouth - the potential to regear the lease over 60,000 sqft with existing Government occupiers.

COOP portfolio, Switzerland

The sale of the COOP portfolio in Switzerland was exchanged for CHF 36.0m (£24.5m). Completion of the sale is expected prior to 31 August 2015. Following completion of the sale, the Company will no longer have any exposure to the Swiss market. These properties are classified as Assets Held for Sale at 28 February 2015.

Development projects

Our development activity is focused on opportunities within the portfolio to meet tenant demand, modernise assets to meet occupier requirements and capture rental growth where demand is strong. A recovery in occupier markets generally has led to increased development activity within the portfolio. Key capital projects include:

Primark, Ingolstadt

A conditional agreement for lease was signed with Primark in January 2015 for a new 5,200 sqm (56,000 sqft) store in the City Arcaden Shopping Centre in Ingolstadt, Germany. The Primark lease will support a complete redevelopment of the centre to accommodate the new store. Once completed, the scheme is expected to provide approximately 7,700 sqm of net retail space which includes an existing H&M store. A further 1,100 sqm of office space on the same site is also planned for redevelopment, in addition to 15 residential units totalling approximately 1,300 sqm.

The shopping centre is in a prominent location on Ludwigstrasse, one of the prime retail streets in Ingolstadt, in the State of Bavaria. The introduction of Primark is expected to significantly strengthen the retail offering within the town and the surrounding areas, encouraging additional footfall.

Weston Favell, Northampton

Following the acquisition of Weston Favell in December 2013 a phased redevelopment plan has been initiated to modernise the centre. Planning was secured in November 2014 for the rebranding of the centre and the reconfiguration of the scheme entrance on the lower ground floor. The redevelopment will include a new entrance and a reinstatement of the original atrium to bring natural light into the scheme. Works have commenced and are expected to complete in September 2015. This first phase is expected to support the future redevelopment of other areas within the scheme.

Birchwood, Warrington

Following the completion of the £6.5m redevelopment and car park extension, a further £5.0m extension is planned to accommodate demand from discount retailers, a foodstore operator and A3 (restaurant) uses. Birchwood is a good example of the strength and growth of discount retail in the UK.

The terms being discussed with potential new tenants represent materially higher rents than comparable units within the existing centre. The successful development of these new units is expected to provide a yield on cost of approximately 8.5% as well as providing strong rental evidence for the rest of the centre.

Travelodge, Enfield

Terms have been agreed with Travelodge to lease an additional 21 rooms at Enfield which will be developed within the existing vacant space on the ground floor. The lease term will be co-terminus with the existing lease which expires in June 2047. Planning approval has been received and works are expected to commence in June 2015 and to complete in November 2015.

Capital projects summary

(1)Indicative cost budget

(2) Costs subject to proposed scheme, indicative only

Portfolio summary

Notes

· Figures reflect the Group's share of joint ventures

· The above table excludes the Group's investment in the Cromwell Property Group which had a market value of £101.8m at 28 February 2015

· Non-core assets include the Hague and the remaining three Delta assets

UK Retail

The market is showing encouraging signs of improvement evidenced by the majority of our centres being close to full occupancy. The discount and convenience sectors are leading the way and are actively taking on new space. As a number of new operators are not yet at their target portfolio size, we foresee further opportunities for lettings and development within our portfolio.

Vacancy by area reduced to 4.2% (August 2014: 4.6%). 12 lettings and renewals were completed totalling £0.58m p.a. across 44,800 sqft at an average of 5.6% below ERV; the number of transactions providing little evidence for the portfolio as a whole. One open market rent review was completed totalling £0.93m reflecting a 13.1% increase over passing rent. Of more consequence was the £0.76m gain in net income during the period reflecting a combination of new rental income and the removal of landlord costs on vacant units.

Post period end, a number of successful lettings were completed adding rental income of £164,000 and increasing net income by approximately £293,000 as a result of the associated reduction in landlord costs and shortfalls.

The portfolio was valued at £344.3m, a 1.8% increase over the six month period. Performance within the portfolio was mixed, with successful asset management and leasing initiatives at Grand Arcade, Birchwood, St Georges and Byron Place driving strong uplifts, whereas a lower net operating income and valuations at West Orchards and Crewe diluted the overall valuation movement.

Consumer & Brand Engagement

The UK Retail portfolio has seen strong returns from a strategic focus on digital and social communication channels during the period, with growth across key mediums including Facebook and Twitter. The portfolio has also strengthened its 'owned' data with continued growth in shopping centre app downloads and consumer databases. The results to date create strong foundations for the portfolio to embed the shopping centre brands, and the retailer brands therein, into the lives of existing and potential shoppers, creating brand loyalty and driving frequency of visit, dwell time and spend. The increased online and social media presence of the shopping centre brands also establishes a digital currency for the portfolio which will be utilised going forward in order to drive brand partnerships and third party opportunities.

Offline engagement has also been a focus for the portfolio via commercialisation efforts. Experiential and promotional activities on the malls increased during the period with income from brand partnerships currently up 15% against target. This type of activity assists in creating theatre in the shopping centres by entertaining and educating shoppers whilst exposing them to new brands and services in addition to driving non-core income.

Notes

· Figures reflect the Group's share of joint ventures

UK Commercial

Investment into regional offices remained strong with investors looking for higher yielding investments. The sharp reduction in supply as a result of residential, student accommodation and hotel conversions together with limited development activity has led to a reduction in availability in certain regional office markets, particularly for Grade A space.

Leasing activity across the portfolio, although limited given the high occupancy, was positive reflecting improving occupier demand and reduction in available space in many regional office markets. There were two lettings in the period totalling £0.62m across 77,800 sqft reflecting rents 3.1% below ERV. Three rent reviews totalling £1.3m were completed at an average of 14.0% above passing rent albeit that these were predominantly index-linked reviews.

Terms have been agreed to let 30,495 sqft at the Delta 900 office building in Swindon for a 15 year term at a rent of £0.3m p.a. The refurbishment is anticipated to cost approximately £0.9m which will deliver a yield on cost of approximately 14.0%.

Values were supported by positive letting activity and the continued strength of the investment market. The portfolio was valued at £144.7m, representing a 4.5% increase over the six month period.

Notes

· Figures reflect the Group's share of joint ventures and excludes non-core assets

UK Hotels

PwC anticipate modest growth in occupancies which will take existing occupancies to record levels and which should be sufficient to drive increases in average daily rates and RevPARs in London by 3.6% and 5.1% respectively. Supply of new hotel rooms is expected to grow with over 7,200 new rooms expected in London in 2015. Growth in the sector appears robust with the Rugby World Cup providing additional demand this year.

Underlying trading across the Company's portfolio remains positive and ahead of budget albeit the month of February being slower following a very good start to the financial year. Rents for the RedefineBDL managed portfolio, which includes all of the Group's hotels except the Enfield Travelodge, were agreed at £13.79m p.a. for this financial year reflecting a 4.8% increase.

Terms have been agreed with Travelodge to lease an additional 21 rooms at Enfield which will be developed within the existing vacant space on the ground floor. The lease term will be co-terminus with the existing lease which expires in June 2047 and will add approximately £120,000 p.a. to the rent roll. The extension is expected to cost approximately £1.0m reflecting a yield on cost of 11.3%.

The portfolio was valued at £221.2m reflecting a like-for-like increase of 1.0% for the six month period. The DoubleTree Hilton in Edinburgh was acquired during the period with the value remaining broadly unchanged.

RedefineBDL

RedefineBDL delivered £0.28m (the Company's share) to distributable earnings. In January RedefineBDL took over the management of 22 Holiday Inn hotels from LRG. Redefine BDL now manages 69 hotels including eight of Redefine International's nine hotels.

Europe

Investment activity remains strong across all key sectors and in particular for investments with the ability to add value. Despite general concerns for the Euro area, Germany maintains a unique and stable economic position. Retail continues to attract the majority of investment capital supported by an optimistic outlook for German retailers and an exceptionally low interest rate environment.

Leasing activity was relatively limited given the low vacancy levels across the portfolio. 14 lettings and renewals were completed totalling €0.55m p.a. across 1,270 sqm at an average 28.2% ahead of ERV. 32 rent reviews were completed totalling €0.89m, an uplift of 2.0% to passing rent albeit these were predominantly index-linked reviews.

A number of short term leases at the Bahnhof Centre in Altona, Hamburg totalling 654 sqm (7,040 sqft) have been extended post period end. The lease extensions totalling €452,005 p.a. have been agreed at 5.9% above ERV, typically on five year terms.

Like-for-like values were marginally up in local currency terms, but suffered from an 8.5% decline in the Euro:Sterling FX rate resulting in a 7.4% like-for like decline (excluding acquisitions) in Sterling terms. This was partially offset by borrowings in local currency. Further details are contained in the financial review.

Notes

· Figures reflect the Group's share of joint ventures and excludes non-core assets

Cromwell

The market value of the Company's shareholding in Cromwell increased by 4.1% to £101.8m (August 2014: £97.8m) during the period. Cromwell's security price as at 28 February 2015 had increased by 15.9% to AUD1.165 (August 2014: AUD1.005) which was offset by a 10.2% decline in the Australian dollar against Sterling. The Company's shareholding diluted marginally to 9.95% from 9.99% at 31 August 2014 due to the issue of additional Cromwell securities relating to their dividend reinvestment plan. Our shareholding in Cromwell continues to provide attractive and growing income returns, however opportunities to recycle this liquid investment continue to be reviewed subject to alternative investment opportunities.

Distributions net of withholding tax of AUD 5.7m (£3.7m) were received during the period. Distributions for periods related to the last two quarters of the 2015 financial year have been hedged at rates of GBP1:AUD1.81 and GBP1:AUD1.82 respectively.

Underlying performance

Cromwell continues to provide consistent and growing income returns from a high quality property portfolio. Distributions for Cromwell's 2015 financial year to June 2015 are forecast to increase by 3.0% to 7.86 cents per security.

Highlights for Cromwell's half year results to December 2014 were:

· Operating Profit of AUD72.9 million (HY14: AUD73.2 million)

· Statutory Profit of AUD87.2 million (HY14: AUD86.7 million)

· Increase in external AUM to more than AUD1.5 billion (excluding acquisition of Valad Europe)

· Conservative asset and capital management strategy maintained to reflect growing economic and valuation risks

· Gearing reduced to 36% following sale of 321 Exhibition Street for AUD207 million, AUD1.07 million above carrying value

· FY2015 operating earnings forecast unchanged at 8.3 cps

· Forecasting 3% increase in distributions in FY2015

Cromwell acquired Valad Europe, Blackstone's European property management arm for €145.0m in April 2015. Valad manages €5.3bn of assets across Europe including Central and Eastern Europe, Germany and the UK. The acquisition provides Cromwell with a European funds management platform with critical mass. Cromwell's external assets under management will increase to approximately AUD 9.0bn with funds management earnings expected to contribute approximately 14% to Cromwell's FY2015 earnings. The acquisition is expected to be 5% accretive to Cromwell's earnings in FY2016.

For further details please visit www.cromwell.com.au 

Financial Review

Overview

Earnings available for distribution for the period increased 19.6% on the same period last year to £21.4m or 1.63p per share. EPRA earnings per share increased by 61.8% to 1.65p per share (28 February 2014: 1.02p). Adjusted NAV per share increased by 1.9% to 41.31p (31 August 2014: 40.54p) and pro-forma Adjusted NAV, taking into account the capital raise post period end, increased 4.6% to 42.40p .

In order to enhance the comparability and transparency of the financial information provided by the Company, Redefine International has adopted the EPRA earnings and net asset value measures in its reporting. The EPRA measures, along with the relevant adjustments to these measures, are key performance indicators for the Group, as they reflect the recurring underlying earnings and highlight the fair value of net assets on an ongoing, long-term basis.

The Company's policy is to distribute the majority of its earnings available for distribution in the form of dividends to shareholders. Earnings available for distribution reflect EPRA earnings adjusted for capital items and certain non-cash IFRS items. Earnings available for distribution are also adjusted to reflect only the Group's share of the net income from the Delta portfolio.

Income statement

The Group's profit attributable to equity holders for the interim period was £35.2m, an £11.2m increase after adjusting the prior period for the one-off effect of the management internalisation. Basic EPS, were 2.70p compared to 2.18p at 28 February 2014 after adjusting for the effect of the management internalisation in the prior period. EPRA earnings increased by 83.1% to £21.6m, compared to £11.8m as reported for the comparable 2014 period.

Gross rental income was up £4.5m largely due to the acquisition of Weston Favell and the restructuring of the Aviva shopping centre portfolio in the prior period, which resulted in Grand Arcade, Wigan and West Orchards, Coventry becoming 100% owned by the Company. This was offset by the disposal of the 10 Delta assets in October 2014. The higher rental income was partly offset by the associated higher interest costs.

Investment income decreased by 27.6% to £3.7m following the disposal of 54.2m Cromwell securities on 29 August 2014.

Administrative and other operating expenses (including investment adviser fees of £1.4m) decreased by 17.1% following the management internalisation, from £4.1m in the comparative period to £3.4m. Professional fees also reduced substantially due to the £1.7m of costs relating to the REIT conversion and management internalisation and £1.9m of disposal costs incurred in the period ended 28 February 2014.

The EPRA cost ratio, presented for the first time in this period due to the management internalisation, amounts to 19.1% including direct vacancy costs and 16.5% excluding direct vacancy costs.

Net finance costs reduced largely due to the disposal of the Gamma and Delta portfolios, the related release of debt obligations and a reduction in the average cost of borrowing.

Analysis of the performance of the business is largely on a segmental or portfolio basis, however, following the Company's recent 50% investment in a German supermarket portfolio and the increased prominence of joint venture investments, the business has also been analysed on a proportionately consolidated basis, as presented below. Statutory results reflect the share of joint ventures using the equity accounting method.

Note: A full reconciliation between IFRS reported profit and earnings available for distribution is provided in Note 18 to the financial statements. The 1.55p per share, as reported in the prior period, includes the 115.1m shares placed in February 2014.

Dividends

The Company declared a dividend for the interim period of 1.60p per share (28 February 2014: 1.50p per share), an increase of 6.7%. The 1.60p per share distribution for the interim period reflects an annualised yield of 7.7% on the Adjusted NAV per share at 28 February 2015.

The Company proposes offering shareholders the option of receiving a cash dividend or a scrip dividend by way of an issue of new Redefine International shares. An announcement containing details of the tax components of the dividend, the timetable and the scrip dividend will be announced separately today (29 April 2015). The record date for the dividend on the JSE and the LSE is 22 May 2015 and the dividend payment date is 5 June 2015.

Cash savings of £11.7m were achieved following a 57.8% take up of scrip relating to the 1.70p dividend paid per share for the period ended 31 August 2014.

Balance sheet

EPRA NAV per share has increased by 2.2% to 38.47p (31 August 2014: 37.66p) largely as a result of the property valuation uplift of £8.6m (0.65p per share) and a net Cromwell fair value uplift of £4.0m (0.30p per share), offset by a £6.3m (0.48p per share) foreign exchange translation movement.

The EPRA NAV includes items which, in the opinion of the Board, should be adjusted for in order to better reflect the underlying value of the Group. A reconciliation of EPRA NAV to Adjusted NAV per share has therefore been presented below:

Net asset value

Notes:

1. The EPRA publishes best practice recommendations for Europe's Stock Exchange listed real estate sector. In order to enhance comparability and transparency the Company has adopted the EPRA net asset value measure within its reporting. The EPRA net asset value ("NAV") presented removes the cumulative fair value movements of interest rate derivatives and deferred tax.

2. Following the successful completion of the Delta restructuring announced on 15 October 2012, the negative net asset value position of 1.77p per share is expected to reverse at the end of the loan term.

3. A liability of £5.2m (0.39p per share) is currently held relating to the facility provided to the Grand Arcade, Wigan. As part of the Aviva restructure completed in December 2013, Aviva retained the right to participate in 50% of the income and capital growth generated by Grand Arcade. This right was recognised at fair value, although is not deemed to have an immediate impact on NAV and has therefore been adjusted for. In addition, as a result of the non-recourse nature of the debt relating to the Justice Centre in the Hague, Netherlands, the negative net asset value position of 0.68p per share has been written back.

Pro-forma net asset value

As a result of the share placement at a 30.3% premium to the Adjusted NAV post the period end, the "Pro-forma NAV" per share is 42.40p per share. The Euro declined 8.5% relative to Sterling during the period which had a net impact of 0.47p on net asset value per share.

Portfolio valuation

Valuations increased in all business segments in local currency however overall valuation movements in Sterling were impacted by a decline of 8.5% and 10.2% in the Euro and Australian Dollar relative to Sterling, respectively.

The UK portfolio increased 2.1% on a like-for-like basis, led by the UK Commercial portfolio which was up 4.5%, largely as a result of increased investment activity and continued inward yield shift. UK Retail produced strong valuation uplifts in the majority of the centres.

The European portfolio increased 0.4% in local currency on a like-for-like basis. The Company's two largest German assets, the Schloss Strassen Centre and Bahnhof Altona, increased 1.2% and 2.8% respectively in local currency following positive letting activity at both centres.

The value of acquisitions increased marginally over the purchase price in local currency. The 0.9% decline in Sterling terms reflects the decline in the Euro since the acquisition date of the German retail portfolio.

The market value of the Group's Cromwell holding increased by 4.1% in Sterling terms reflecting a 15.9% increase in the market value in Australian Dollars and a 10.5% decline in the Australian dollar against Sterling.

Notes:

1. Valuation movement includes foreign exchange movements. The Euro declined 8.5% relative to Sterling during the six month period to 28 February 2015.

2. Valuation movement includes foreign exchange movements. The Australian Dollar declined 10.2% relative to Sterling during the six month period to 28 February 2015.

3. Values and movement reflects the Group's share of joint ventures.

Capital management

Further progress has been made in strengthening the balance sheet with the pro-forma LTV ratio reduced to 45.1% (31 August 2014: 48.1%).

The Group's pro-forma weighted average debt maturity stands at 9.42 years (31 August 2014: 9.34 years). The Group disposed of 10 Delta assets on 6 October 2014, which resulted in a reduction in the Delta debt from £73.1m to £38.4m. The pro-forma ratios shown below exclude the assets and debt in the remaining Delta portfolio and Hague asset and include £70.0m of cash raised post period end.

The Group utilises derivative instruments, including interest rate swaps and interest rate caps to manage its interest-rate exposure. At 28 February 2015, the net fair value liability of the Group's derivative financial instruments was £3.7m (31 August 2014: £2.9m).

The Group has a hedging policy which requires at least 75% of all interest rate exposures exceeding one year to be on a fixed or capped rate basis. At 28 February 2015, Group debt (including its economic interest in subsidiaries and joint ventures) was 95.1% fixed or capped. For facilities with interest rate swaps or caps attached, the interest rates are fixed or capped for the duration of the facility. The changes in the fair value of the Group's hedging instruments have been recognised in profit or loss.

Statement of the Directors' Responsibilities in Respect of the Condensed Consolidated Interim Financial Statements

The directors are responsible for preparing the condensed consolidated interim financial statements in accordance with applicable law and regulations. In addition, the directors have elected to prepare the condensed consolidated interim financial statements in accordance with International Accounting Standard 34, Interim Financial Reporting, as issued by the IASB.

The condensed consolidated interim financial statements are required to state the affairs of the Group and the profit or loss of the Group for the period.

In preparing condensed consolidated interim financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether they have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as issued by the IASB; and

• prepare the condensed consolidated interim financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Group and to allow for the preparation of the condensed consolidated financial statements. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation governing the preparation and dissemination of financial statements may differ from one jurisdiction to another.

We confirm that to the best of our knowledge:

• the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as approved by the EU; and

• the interim management report includes a fair review of the information required by:

a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed consolidated set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

M J Watters A Rowell

28 April 2015 28 April 2015

Independent Review Report to Redefine International P.L.C.

Introduction

We reviewed the condensed consolidated financial statements in the half-yearly financial report of Redefine International P.L.C. for the six months ended 28 February 2015 which comprise the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated balance sheet, the condensed consolidated statement of changes in equity, the condensed consolidated statement of cash flows, and the condensed related explanatory notes.

We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed consolidated set of financial statements.

This report is made solely to the Company in accordance with our engagement letter to assist the Company in meeting the requirements of the Disclosure and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA"). Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.

Directors' Responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FCA.

As disclosed in Note 2, the annual financial statements of the Group are prepared in accordance with IFRS as issued by the IASB.

The Directors are responsible for ensuring the condensed consolidated financial statements included in this half yearly report have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the IASB.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed consolidated set of financial statements in the half-yearly financial report based on our review.

Scope of Review

We conducted our review in accordance with the International Standards on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Financial Reporting Council. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated set of financial statements in the half-yearly report for the six months ended 28 February 2015 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as issued by the IASB and the DTR of the UK FCA.

N. Marshall

For and on behalf of KPMG

Chartered Accountants

1 Harbourmaster Place

IFSC

Dublin 1

Ireland

28 April 2015

CONDENSED Consolidated Income Statement

For the six months ended 28 February 2015

Condensed Consolidated Statement of Comprehensive Income

For the six months ended 28 February 2015

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

Condensed Consolidated BALANCE Sheet

As at 28 February 2015

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

The condensed consolidated interim financial statements were approved by the Board of Directors on 28 April 2015.

Condensed Consolidated Statement of Changes In Equity

For the period ended 28 February 2015

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

Condensed Consolidated CASH FLOW statement

For the six months ended 28 February 2015