UK-based property fund Redefine International grew its dividend per share 1.6% in the six months to February, in line with targets. The company was on course to deliver strong income payouts, CEO Mike Watters said on Tuesday.
The company also completed its AUK portfolio acquisition, increasing the value of its portfolio to £1.5bn and adding £28.6m of annualised gross rental income, which it said was transformational.
“With the completion of the second tranche of the AUK transaction on March 1, we now have a significantly better quality portfolio, underpinned by strong underlying property fundamentals from which we can, ultimately, produce better quality income. We are confident that our portfolio is now in a robust position from which we can continue to deliver on our commitment to grow income as the property cycle advances,†Mr Watters said.
Redefine International is 30.1% owned by JSE-listed Redefine Properties.
The other 70% is split about equally between JSE and London Stock Exchange investors.
“Over the past ten years, Redefine International has transformed into an established FTSE 250 UK real estate investment trust with a market capitalisation in excess of £800m,†chairman Greg Clarke said.
Mr Watters said the company was waiting for its share price to strengthen before making any new significant deals.
Grindrod Asset Management chief investment officer Ian Anderson said investors might be better served owning some of Redefine International’s competitors.
The current net asset value (NAV) per share of Redefine International is 40.9p per share (or 863c per share), while its shares are trading at 46.6p per share (or 980c per share). It is one of the few UK-listed real estate investment trusts trading at a premium to NAV.
