Do not pay too much heed to the earnings figures from Redefine International (RDI). Its full-year results were dragged down by a fair-value loss of £12.8m incurred by selling its remaining stake in Australian property group Cromwell. The loss owed much to the collapse of the Australian dollar against sterling.
Redefine has also sold properties in Switzerland as it refocuses on the stronger markets of Germany and the UK. There were acquisitions in both these territories during the period, including a joint-venture purchase of 56 German retail properties that should provide gross annualised rental income of €12.6m (£9.1m).
At the period-end, Redefine's adjusted net asset value (NAV) was 41.7p, compared with 40.5p a year earlier. The uplift was helped by the company's UK hotel assets, a strong sector in a strong location - London. But the current composition of Redefine's portfolio will change once again when the £437m purchase of the AUK portfolio from Aegon's fund arm - agreed after the period-end last month - beds in.
Analysts at Peel Hunt expect adjusted NAV of 45p at the August 2016 year-end.
| REDEFINE INTERNATIONAL (RDI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 56p | MARKET VALUE: | £823m | |
| TOUCH: | 55.7-56p | 12-MONTH HIGH: | 60p | LOW: 49p |
| DIVIDEND YIELD: | 5.8% | TRADING PROPERTIES: | na | |
| PREMIUM TO NAV: | 37% | NET DEBT: | 85% | |
| INVESTMENT PROPERTIES: | £957m* | |||
| Year to 31 Aug | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 49.0 | 5 | 1.18 | 4.13 |
| 2012 | 25.9 | -125 | -24.16 | 4.40 |
| 2013 | 31.0 | 67 | 6.66 | 3.11 |
| 2014 | 37.1 | 102 | 8.00 | 3.20 |
| 2015 | 40.6 | 84 | 5.10 | 3.25 |
| % change | +9 | -18 | -36 | +2 |
Ex-div: 19 Nov Payment: 4 Dec *Includes £22.6m in joint ventures and associates | ||||
