Redefine rapidly adding assets
Redefine Properties offers an attractive dividend yield but don’t expect fireworks from its local real estate portfolio any time soon
Redefine Properties may not have been the most exciting stock on the JSE’s real estate block in terms of share price growth in recent times, but it has certainly delivered when it comes to earnings consistency. Despite tough local trading conditions and a stronger rand, which negatively affected valuations of its offshore interests, the company this week declared a decent 7% dividend growth for the 12 months ending August. That’s in line with market expectations and the fifth consecutive year that Redefine has managed to grow income payouts by between 7% and 8% (see graph).Like most other property counters that still generate the bulk of their earnings in SA, Redefine’s share price has been under pressure since President Jacob Zuma’s cabinet reshuffle at the end of March and the subsequent credit-rating downgrade. On Monday, the counter was trading 8% below its March high of R10.60 and roughly in line with its levels 12 months ago. The company, currently the JSE’s third-largest SA-b...
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