Redefine’s revenue slashed by 30% and dividend deferred

The South African listed property sectors has been one of the hardest hit and one of the slowest to recover, following the advent of the coronavirus pandemic and ensuing lockdowns. Redefine, the country’s second largest real-estate investment trust by market capitalisation, announced its interim results to February 28 2021 and there was very little to get excited about. Nearly every important performance metric was down on the prior period, with rental reversions arguably the most concerning barometer of performance. The diversified REIT has large exposure to office and retail space, with many property analysts forecasting weak demand in these sub-sector for time to come. – Justin Rowe-Roberts

Redefine Property SENS statement: 

Condensed unaudited Group results for the six months ended 28 February 2021

  –  Loan-to-value improved to 44.3%

  –  Net asset value per share increased to 719.74 cents from 31 August 2020

  –  Realised asset disposals R4bn

  –  Distributable income per share decreased to 26.18 cents

  –  Significant progress made in transformation of senior executive team

Dividend for period ended 28 February 2021

Having regard to the effects of the Covid-19 pandemic, its impact on Redefine’s business operations, liquidity and LTV ratio, and the extraordinary uncertainty of its future impact on the Company, the board as a precautionary measure to provide the Company with additional flexibility and bolster its liquidity, has resolved to defer its decision on the declaration of a dividend until the release of the results for the year ended 31 August 2021, which is expected during November 2021.

Subject to the liquidity and solvency test as required by the Companies Act at the time of the declaration of the dividend, it is anticipated that Redefine should be in a position to pay a dividend for the 2021 financial year.

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