Headline half-year figures don't give the whole picture for property group Redefine International (RDI). Earnings available for distribution rose 5 per cent to 1.55p a share, leaving the company's big dividend payment fully covered. And although adjusted book value (NAV) eased slightly from 38.7p per share to 38.1p, without the one-off impact of last year's management internalisation it would have risen to 40.1p.
The strength of the property market allowed the group to make disposals of £29.4m at an average premium of 24 per cent to book value - suggesting surveyors' estimates of property valuations are conservative. The balance sheet also received a lift from a £54.7m share placing in February. These and a 2 per cent uplift in the portfolio valuation helped reduce the group's loan-to-value ratio from 57 per cent last August to 53 per cent.
Major acquisitions included the Weston Favell shopping centre for £84m; UK retail assets now comprise nearly 35 per cent of the total group portfolio. UK retail occupancy rates rose marginally, while annualised rental income jumped from £19.6m to £26.5m.
Analysts at Peel Hunt are forecasting adjusted year-end NAV of 40p a share (from 39p in August 2013).
| REDEFINE INTERNATIONAL (RDI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 54.5p | MARKET VALUE: | £692m | |
| TOUCH: | 54.25-54.5p | 12-MONTH HIGH: | 61p | LOW: 36p |
| DIVIDEND YIELD: | 5.7% | TRADING PROPERTIES: | £50.9m | |
| PREMIUM TO NAV: | 76% | NET DEBT: | 167% | |
| INVESTMENT PROPERTIES: | £842m | |||
| Half-year to 28 Feb | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 27.5 | 18.1 | 1.9 | 1.475 |
| 2014 | 31.0 | 2.0 | -0.1 | 1.5 |
| % change | +13 | -89 | - | +2 |
Ex-div: 21 May Payment: 5 Jun | ||||
