Redefine International CEO Michael Watters. Picture: RUSSELL ROBERTS
Redefine International CEO Michael Watters. Picture: RUSSELL ROBERTS

RDI Reit, the UK arm of Redefine Properties’ new management strategy appears to be bearing fruit for shareholders after the company struggled to meet expectations for a couple of years.

A number of critics have said Redefine should exit its RDI Reit investment, which currently sits at 29.62%, and re-invest the capital in eastern Europe. 

The company, which operates as a rand hedge for South Africans, declared a dividend of 2.7p per share, an increase of 3.8%. Net rental income increased 2.1% on a like-for-like basis.

RDI sold low-growth assets then re-invested capital in properties that offered better growth prospects.

CEO Mike Watters said RDI Reit had performed well in terms of dividend growth, as well as in decreasing the company’s exposure to debt.

“I am very pleased with the progress against our strategic priorities contained in these results. We continue to deliver one of the highest yields on net asset value in the sector, with our performance underpinned by a strong balance sheet and a significantly improved portfolio.”

Watters said the property group had spent the past three years improving the quality of its income sources and the defensive nature of its portfolio. 

“The structural changes in occupier demand that are placing a far higher emphasis on operational platforms and services have been addressed. This is an area we have already made great strides in through our latest major acquisitions of limited service hotels and our expansion into London serviced offices. Security of our operational income is supported by our strategic partnerships with RBH and Office Space in Town,” he said.

“The year ahead will no doubt bring its own set of challenges. With this in mind, we are placing more emphasis on maintaining liquidity and lower leverage to enable us to continue delivering long-term, sustainable and growing income for our shareholders.” 

AndersonA@businesslive.co.za