Redefine Properties declared a return of 16,75c per linked unit for the three months until end-February.
Together with the return of 16,75% per linked unit for the previous quarter, the total return for the six months until the end of February is 33,50c per linked unit.
These are the first results for a six-month period after Redefine, ApexHi and Madison merged last year. It also includes the results for Cerif’s, which were consolidated for one month, and Corovest Fund Managers, the asset manager for Ciref, which were consolidated for five months.
Although these results are in agreement with Redefine’s forecast, analysts agree that they are average.
Evan Jankelowitz, co-head of Stanlib’s property funds, says they are mediocre, but nothing to be ashamed of in the current market.
He says conditions in the property market are more difficult than initially expected and there are still lots of woes. The property market tends to lag economic growth.
He couldn’t give any further comment due to the complexity of the results and first wants to discuss it with Redefine’s management.
Wolf Cesman, joint CE of Redefine, says management is continuously trying to make the firm more streamlined to position it as a well-managed, quality property fund that generates sustainable income and capital growth for its linked unit holders.
“Redefine will be making the property management function internal in the next couple of months, when the agreement with Broll comes to an end.”
He says it will offer the potential for significant future savings on an annual basis.
Expectations are that the returns for the six months until end-August will be marginally lower than those in the first six months. Cesman says it is due to an expected lower dividend from Ciref.
It is expected that the returns for the year until end-August will amount to between 65,7% and 67,5% per unit. This is an increase of between 16% and 19% compared to the returns for 2009. – Elma Kloppers, Sake24
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