The renaissance of regional property continues to boost Redefine International (RDI), lifting its adjusted net asset value by 4.6 per cent to 42.4p over the six months to February. The product of a distressed portfolio acquisition in 2011, Redefine also continues to pay down and restructure what was once an enormous debt pile. Following a recent share placing, its loan-to-value ratio stands at 45 per cent - down from 53 per cent in February 2014.
Office values were boosted by the removal of significant stock for conversion into student accommodation or flats, while the retail portfolio benefited from strong demand for space from discount and convenience retailers. Redefine also continues to recycle capital into new assets, with acquisitions valued at £142.5m in the first half. The company increased its presence in Germany, buying 56 retail properties in a joint venture with its largest shareholder. After refinancing the €100m (£72m) debt secured against the portfolio, the properties are expected to produce a yield on equity of over 11 per cent.
Overall, profits available for distribution - which exclude non-cash items such as paper profits on revaluation - rose 19 per cent to £21.4m, or 1.63p per share, covering the generous dividend. Analysts at Peel Hunt expect adjusted net asset value of 44p at year-end (from 40.5p in August 2014).
| REDEFINE INTERNATIONAL (RDI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 59p | MARKET VALUE: | £858m | |
| TOUCH: | 59-59.25p | 12-MONTH HIGH: | 60p | LOW: 48p |
| DIVIDEND YIELD: | 5.6% | TRADING PROPERTIES: | £48.1m | |
| PREMIUM TO NAV: | 56% | NET DEBT: | 119% | |
| INVESTMENT PROPERTIES: | £925m* | |||
| Half-year to 28 Feb | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 31.0 | 2.0 | -0.08 | 1.5 |
| 2015 | 37.9 | 38.5 | 2.70 | 1.6 |
| % change | +22 | +1792 | - | +7 |
Ex-div: 21 May Payment: 5 Jun *Includes £20m in joint ventures | ||||
