Redefine delivers resilient half-year performance, eyes growth through simplification, sustainability, and smart capital allocation

Top 3 Bullet Points:

• Core operations deliver growth with group occupancy rising to 94.7%, supported by strong retail and industrial performance.
• Loan-to-value improved to 41.2%, with strategic Polish JV simplification set to unlock further capital and reduce risk.
• Solar PV capacity expanded to 52 MWp, with plans to exceed 64 MWp in next year, cutting grid reliance and enhancing ESG credentials.

Redefine Properties, a leading JSE-listed diversified REIT, has reported a robust set of results for the six months ended February 2025, underscoring operational resilience, a disciplined capital strategy, and progress on sustainability.

With assets across South Africa and Poland, Redefine’s performance was underpinned by steady improvements in occupancy and profitability across all sectors. Group net operating margin rose to 76.9%, led by 79.1% in South Africa and 77.2% in core Poland assets. The standout performer was EPP in Poland, delivering 99.2% core occupancy, while local portfolio occupancy rose to 94.7%, reflecting effective tenant retention and leasing activity.

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CEO Andrew Konig reflected on the resilience of the business amid global volatility. “The last five years have been defined by one disruption after another. Yet, Redefine has emerged leaner, stronger, and more focused on long-term value,” he said. “These half-year results reflect our opportunity-led strategy and the strength of our platform to navigate complexity.”

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A key achievement was the improvement in the Group’s loan-to-value (LTV) ratio to 41.2%, nearing its target range of 38-41%. The Group continues to simplify its Polish joint ventures, aiming to release capital, reduce finance costs, and strengthen earnings quality.

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“Disposing of non-core interests allows us to reinvest in scalable, income-generating assets or reduce debt – both pathways support our core goal of value creation,” added Konig.

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Redefine’s liquidity position increased to R6 billion, up from R4.8 billion in August 2024. The Group successfully refinanced the bulk of R3.5 billion in FY2025 maturities, with only R500 million remaining.

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CFO Ntobeko Nyawo noted, “Our proactive funding strategy and R2.1 billion bond issuance highlight strong market confidence and diversified debt access.”

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Operationally, the industrial and retail portfolios outperformed, with industrial vacancy at just 1.1% and lease renewals achieving reversions of 4.6%. Retail showed its first positive lease reversion in over three years at 0.4%, driven by demand for dominant centres.

The office sector remains under pressure due to oversupply but pockets like Rosebank and the Western Cape continue to attract demand for premium space.

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Chief Operating Officer Leon Kok highlighted the Group’s solar investment drive. “We’ve grown installed solar PV capacity to 52 MWp and plan to add another 13.3 MWp within 12 months. This supports tenant resilience and our sustainability commitments,” he said.

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In Poland, Redefine’s logistics platform (ELI) is finalising a revised shareholder agreement, with vacancy expected to drop to 3.5% by June. The Group is also advancing a €100 million self-storage platform, with 10,000 sqm under development and 38,000 sqm in the pipeline.

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Redefine reaffirmed guidance of 50 - 53 cents distributable income per share, with a dividend payout of 80 - 90%. Looking ahead, Konig emphasized, “We are not chasing growth for its own sake. We are focused on refining our asset base, enhancing operational efficiency, and delivering long-term, sustainable returns.”