Redefine moves to fully covered dividends – Redefine International has published results for the year ended 31 August 2017, its EPRA NAV rose to 41.4p rom 40p and EPRA earnings per share rose from 2.7p to 2.8p on earnings up from £44.1m to £50.9m. The Board has declared a second interim dividend of 1.3 pence per share taking dividends declared for the full year to 2.6 pence per share. This is a reduction from the 3.2p paid last year but the dividend is now fully covered by earnings.
Highlights
- Gross rental income increased 3.7% on a like-for-like basis (2016: 1.0%)
- Dividend fully covered with pay-out ratio of 94.5%
- Portfolio valuation increased 3.0% on a like-for-like basis (2016: 3.4%)
- Cost of debt reduced to 3.1% (2016: 3.4%)
- LTV reduced to 50.0% including post year end transactions (2016: 53.4%)
- EPRA occupancy remains high at 97.7% (2016: 97.7%)
- Disposals of GBP148.2 million at a 12.2% premium to book value
- Leases subject to indexation increased to 38.9% (2016: 34.7%)
- WAULT of 7.4 years to first break (8.5 years to lease expiry)
- 235 lease events completed during the year totalling GBP17.3 million (up 3.9% on passing rent; up 0.7% on ERV)
- Agreement for lease with TK Maxx at Derby for new 22,000 sqft unit
- Office vacancy reduced to 4.2% following a number of successful lettings (2016: 6.9%)
- Post year end, scheme of arrangement approved to increase the Group’s interest in IHL
Greg Clarke, Chairman, commented: “Redefine International has delivered another solid performance for its investors. Following the Capital Markets Day earlier this year, the Company outlined clear and measurable medium-term targets and has demonstrated clear conviction in executing these throughout the year. The continued focus on improving the portfolio’s quality is well on track, following the completion of a number of successful strategic disposals and income enhancing investments, whilst progress in strengthening the capital structure leaves the business well positioned to offer investors security in an uncertain economic climate.”
Mike Watters, Chief Executive, commented: “At our Capital Markets Day earlier this year, we outlined our strategic priorities to put the Company on track to becoming the UK’s leading income focused REIT. I’m pleased to report tangible progress across all areas which enables us to present a higher quality portfolio and stronger balance sheet. In line with guidance, 2017 has seen the dividend re-based to align more closely to operational cash flow. We firmly believe this was the right thing to do and continue to deliver one of the highest yields on NAV in the industry. With a growing global appetite for predictable income returns, we believe our income-led business model, designed to deliver market leading shareholder distributions, remains extremely attractive and we look to the future with confidence.”