Redefine International (RDI) has spent a busy six months recycling assets and developing an income-led asset management portfolio. Disposals of £95m were made at a 12.4 per cent premium to the August 2016 market value, and €49.4m (£42.1m) of this was used to acquire control of a German supermarket portfolio previously held in a joint venture. Further disposals of £29m are currently being processed.
The net effect of the recycling programme has strengthened the balance sheet reducing debt to £792m and bringing the loan-to-value ratio down from 53.4 per cent to 49.9 per cent. In addition, refinancing has trimmed the weighted average cost of debt to 3.3 per cent. Redefine's portfolio, a quarter of which is in Germany, is especially strong, with a third of rental income linked to inflation or fixed rental increases, together with an average lease length of 7.5 years. And in the six months to February this year, rental income grew by 14 per cent to £45.8m. Of this, an annualised £2.2m was generated from 40 new lettings.
Analysts at Peel Hunt are forecasting adjusted net asset value (NAV) of 40p at the August 2017 year-end, unchanged from a year earlier.
| REDEFINE INTERNATIONAL (RDI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 38.34p | MARKET VALUE: | £695m | |
| TOUCH: | 38.32-38.47p | 12-MONTH HIGH: | 48p | LOW: 35p |
| DIVIDEND YIELD: | 7.5% | TRADING PROPERTIES: | nil | |
| DISCOUNT TO NAV: | 4% | NET DEBT: | 98% | |
| INVESTMENT PROPERTIES: | £1.33bn* | |||
| Half-year to 28 Feb | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2016 | 39.9 | 8.4 | 0.5 | 1.6 |
| 2017 | 39.8 | 42.0 | 2.3 | 1.3 |
| % change | - | +400 | +360 | -20 |
Ex-div: 8 Jun Payment: 26 Jun *Includes joint ventures | ||||
