Improved liquidity boosts Redefine

Posted On Tuesday, 19 April 2005 02:00 Published by eProp Commercial Property News
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Listed property loan stock Redefine Income Fund yesterday posted above industry average results, reporting an 11,29% increase in its total distributions for the six months to February.

Jeffrey WapnickRedefine CEO Brian Azizollahoff said that among other things, the company had realised a substantial amount of cash through the sale of many of its listed property stocks in the first quarter and early second quarter of the 2005 financial year.

Azizollahoff said yesterday that the cash had been "redeployed" to buy fixed properties.

"It brought our borrowings down and there was a big savings in interest on debt," he said.

The company was also able to effectively halve its operating costs. Redefine’s operating costs were reduced to R17,5m from R36,09m in the same period last year.

Azizollahoff said that another positive factor was that the nature of Redefine’s property portfolio had changed. "We’ve sold smaller multi-tenanted buildings and our profile has changed.

"There are a lot more single-tenanted larger buildings which are easier to manage," he said.

These leases were mainly "triple net leases" where the tenant and not the owner paid all the maintenance costs and building expenses.

Catalyst Securities MD Andre Stadler said Redefine had reported a "good set of results".

"You can see the impact of their strategy to realise some of their listed property stocks and replace those with yield- enhancing direct property assets," said Stadler.

"They have also reduced their cost of borrowing, which has had a positive impact on distributions per unit."

Stadler said there also appeared to be "improved efficiencies" as far as the expense management of the property portfolio was concerned.

Last modified on Saturday, 10 May 2014 09:21

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