JOHANNESBURG (Reuters) -South African commercial property group Redefine reported on Monday that its full-year distributable income fell 2.9%, at the centre of its forecast range and still affected by a prolonged period of high interest rates.
The group said its distributable income per share – which is equivalent to net profit and one of the primary measures of underlying financial performance in the listed property sector – declined to 50.02 cents in the year ended Aug. 31, from 51.53 cents a year earlier.
It expects distributable income of between 50 and 53 cents per share for 2025, helped by an improving operating environment, particularly since South Africa began cutting interest rates in September for the first time in four years.
“This year has marked a crucial turning point for the property sector, as easing interest rates and increasing confidence are leading to better property fundamentals and a more favourable operating environment,” the company said in a statement.
Revenue grew by 7.5% to 10.65 billion rand ($607 million) as the group reported recovery across its key operational metrics. However, this was offset by net finance charges which increased by 15.1% to 2.1 billion rand.
“We anticipate further improvements in occupancy rates for FY25 (financial year 2025) due to positive sentiment and decreasing interest rates, which are expected to enhance consumer spending power,” Chief Operating Officer Leon Kok said.
The company declared a dividend of 22.25 cents for the second half, down from 23.48 cents in the second half a year earlier.
($1 = 17.5344 rand)
(Reporting by Sfundo Parakozov; Editing by Kim Coghill and Susan Fenton)
