Redefine Properties (RDF) H2 2024 earnings summary

Executive summary

• Net asset value (NAV) per share increased by 2.9% to ZAR 7.88, with the property asset platform expanding to R99.6bn, split between South Africa (R64.7bn) and Poland (R34.7bn).

• Distributable income per share declined by 2.9% to ZAR 0.50, mainly due to higher funding costs from acquisitions.

• FY24 marked a turning point in the property cycle, with improved fundamentals and organic growth in both core markets.

• Focus on strategic capital allocation, operational efficiency, and ESG integration to drive long-term value.

• Portfolio is 65% South Africa, 35% Poland, with a focus on retail and logistics assets.

Financial highlights

• Total assets rose to ZAR 101.9 billion from ZAR 99.4 billion year-over-year.

• Loan-to-value (LTV) ratio increased to 42.3%, mainly due to acquisitions.

• Interest cover ratio at 2.1x, reflecting a full year of elevated interest rates.

• Dividend per share at ZAR 0.425 (42.52 cents), payout ratio of 85%.

• EPP distributable income grew 19.9% to R939m.

Outlook and guidance

• Distributable income per share guidance for FY 2025 is ZAR 0.50–ZAR 0.53.

• Dividend payout ratio to be maintained at 80%–90%.

• Anticipates an upward property cycle with easing interest rates and improved confidence.

• Focus on organic growth, asset management optimization, and capital recycling.

• LTV targeted to return to 38%–41% over the medium term.