Only politics can lead to economic turnaround, Redefine says
One of SA’s biggest landlords expects distribution growth of about 4% in its year to end-August 2020 as political uncertainty continues to subdue economy
Redefine Properties, one of SA’s biggest landlords, expects about 4% distribution growth in its year to end-August 2020, amid few signs that political solutions to SA problems such as unreliable electricity or policy uncertainty are in the offing.
The company met its distribution guidance of 4% growth for its year to end-August, and expects similar growth in 2020 amid a lack of clarity on contentious political issues, such as land expropriation without compensation, the National Health Insurance (NHI) and prescribed assets.
Revenue rose 4.1% to R8.79bn in its year to end-August, while headline earnings per share fell 42.6% to 39.53c.
Distribution per share rose 4% to 101c. The company’s active portfolio vacancy rate rose to 5.1% from 4.5% previously, though tenant retention was “pleasing” at 93.3%.
Most of Redefine’s R95.4bn portfolio is in SA, though it also has investments in Poland, the UK and Australia.
At the end of the period diversified local property assets were valued at R72.8bn, while international investments were at R22.6bn.
Redefine’s share price has lost 21.72% so far in 2019, compared with a 5.01% fall in the JSE property index.