Redefine Properties: Operational momentum lifts earnings outlook

Redefine Properties (JSE: RDF) has raised its FY25 distributable income per share (DIPS) guidance to 51.5 - 52.5 cents, reflecting improved margins, stronger occupancy, disciplined capital management, and resilient operational performance.

Background & Market Position

‍Redefine remains one of South Africa’s leading diversified REITs, with a platform spanning retail, industrial, office, logistics, and renewable energy locally, and a significant retail and logistics portfolio in Poland.

• South Africa: Focus on resilient retail centres, modern logistics facilities, and selective office exposure.
• Poland: Strong retail centres in high-demand cities and a fast-growing logistics platform.
• Balance Sheet: Liquidity of R7.6bn, cost of debt down to 6.6%, and LTV improving to within the 38 - 41% target range.

FY25 Performance Highlights

• Earnings Upgrade: DIPS lifted to 51.5–52.5c.
• Margins: Net operating profit margin set to rise to 77% (75% in FY24).
• Income Quality: 99.8% of earnings from recurring income.
• Asset Sales: R1.1bn completed locally vs R386m in 2024.
• Occupancy: High across core retail & industrial; improving in offices.
• Renewable Energy: Capacity expanded by 9.3MW to 52.5MW, with another 13MW in pipeline.
• Poland Retail: 97.9% occupancy, 99% rent collection, +2% turnover growth.
• Poland Logistics: Vacancy cut from 6% to 3%, renewals driving 6.3% rental growth.
• Self-Storage: New 28 000sqm pipeline across Kraków, Warsaw, and Gdańsk.

Strategic Priorities Going Forward

• Financial Discipline: Maintain low cost of debt, optimise capital recycling, and simplify offshore joint ventures.
• Growth Focus: Expand renewable energy footprint to shield tenants and margins; capture demand in logistics and industrial.
• Retail Strength: Build on tenant turnover growth and trading density to secure sustainable escalations.
• International Expansion: Leverage high-demand Polish cities for stable income and future equity partnerships.
• Mindset & Culture: Drive internal “Upside of Us” initiative to translate optimism into performance momentum.

The Way Forward

‍CEO Andrew König says Redefine is entering FY26 with strong momentum, a sharper growth focus, and supportive macro tailwinds including declining energy disruption, infrastructure reform, and the anticipated removal of South Africa from the FATF greylist.

With disciplined capital management, operational resilience, and sustainability embedded as a core business driver, Redefine is positioned to deliver long-term growth and shareholder value across both South African and offshore portfolios.

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