Redefine Properties total distribution up 7.3% to 68.7c

Redefine Properties (RDF) has declared a distribution of 35.0c per linked unit for the six months ended August 2013‚ which is 7.7% ahead of the comparable period‚ taking the total distribution to 68.7c per linked unit in 2013‚ up 7.3% compared with 2012’s 64c.

The company said this was ahead of market guidance and showed year-on-year growth.

Results for the year reflected considerable changes as a result of corporate activity‚ including the deemed disposal of Redefine Properties International (RIN)‚ which had resulted in RIN being treated as an equity accounted associate rather than a consolidated subsidiary in accounting terms.

They also reflected the consolidation of Fountainhead from March 27 2013‚ following Redefine’s acquisition of a controlling interest. Consequently‚ the financial results were not directly comparable with the previous year.

Contractual rental income for the year comprised 89% compared with 2012’s 81% of total revenue‚ income from listed securities was 9% from 17% the previous year‚ and trading and fee income was unchanged at 2%.

Operating costs represented 20% of total revenue due to a strict focus on costs and the internalisation of electricity recoveries.

The local operations contributed 89% to distributable income.

The group said a subdued trading environment‚ disproportionate increases in rates and taxes‚ and continued financial market volatility were recurring themes for the coming financial year.

It said it is well focused on managing the variables within its control and the restructured property asset base was strongly positioned to absorb continued improvement of the portfolio without materially diluting income.

Redefine expected growth in distributable income per linked unit for 2014 at a rate similar to what had been achieved in 2013.

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