As a listed company Redefine International (RDI) has been around for a decade, but it is in the past few years that big changes have taken place, not least a fourfold increase in market capitalisation, a more simplified property portfolio and the resolution of certain legacy financial issues.
The quality of the portfolio was improved by the £437m purchase of the AUK portfolio from Aegon's fund arm in the first half. That purchase was part-funded by £252m of bank debt, which pushed the loan-to-value rate up from 51.8 per cent to 53.4 per cent. But over £160m of debt was refinanced, reducing the cost of it by 50 basis points to 3.4 per cent. There are now no facilities maturing before 2020.
Adjusted net asset value (NAV) slipped from 41p to 40p per share, reflecting costs associated with the AUK acquisition and a 1 per cent increase in stamp duty land tax. The fall in headline profit reflected a £42.5m portfolio devaluation compared with a £31.5m uplift in the previous year, but net rental income rose by 28 per cent to £80.4m.
Analysts at Peel Hunt are forecasting adjusted NAV at the August 2017 year-end of 39.8p a share.
| REDEFINE INTERNATIONAL (RDI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 42.63p | MARKET VALUE: | £765m | |
| TOUCH: | 42.63-43.12p | 12-MONTH HIGH: | 58p | LOW: 38.5p |
| DIVIDEND YIELD: | 7.5% | TRADING PROPERTIES: | nil | |
| PREMIUM TO NAV: | 9% | NET DEBT: | 111% | |
| INVESTMENT PROPERTIES: | £1.41bn* | |||
| Year to 31 Aug | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 25.9 | -125 | -24.2 | 4.4 |
| 2013 | 31.0 | 67 | 6.7 | 3.11 |
| 2014 | 37.1 | 102 | 8.0 | 3.2 |
| 2015 | 40.6 | 84 | 5.1 | 3.25 |
| 2016 | 39.0 | 8.6 | 0.5 | 3.2 |
| % change | -4 | -90 | -90 | -2 |
Ex-div: 17 Nov Payment: 12 Dec Includes £16m in joint ventures and associates | ||||
