99.75%

Shareholder approval for German acquisition

cost €49.4 million (R709.43m), adding that the German economy appeared stable with modest growth and one of the lowest unemployment rates in Europe at 4.3 percent.

Redefine said prime yields in Germany’s core markets could be below their last peak, but continuing scarcity of investment product and strong investment demand, particularly for prime assets, suggested ongoing support for valuations.

Chief executive Mike Watters said: “Our diversified portfolio, which includes a 21 percent weighting to Germany (25 percent following the German supermarket portfolio acquisition) and no direct exposure to the financial services markets in London, gives us relative confidence in our outlook.”

In the half-year results the group reported that underlying earnings increased by 13 percent to £24.3m (R410.45m) to end February, up from £21.5m.

The group attributed the increase to the full period impact of the AUK acquisition, the second tranche of which was completed in March last year.

The board declared an interim dividend of 1.3 pence per share on earnings of 1.35p per share.

“The disposals achieved during the period, in addition to the selective reinvestment of proceeds, illustrate our commitment to improving the overall quality of the portfolio. With optimism in the long-term outlook of the markets we operate in, we remain committed to driving Redefine International forward to cement the company’s position as the UK’s leading income-focused diversified Reit,” said Watters.

Group chairperson Greg Clarke said he was equally pleased with the progress made. “Against an uncertain backdrop, Redefine International has delivered a solid performance underpinned by a strategy which is expected to deliver a much stronger company, portfolio and capital structure for the benefit of shareholders over the long-term,” he said.

Redefine shares dropped 0.36 percent on the JSE to close at R10.92 on Wednesday, valuing the company at R60.85 billion.