5th Nov 2020 10:50
(Alliance News) - London-based RDI REIT PLC on Thursday announced Chief Executive Mike Watters will retire in December and added that its loss widened in the 2020 financial year.
The London and Johannesburg dual-listed property investment business said he will be succeeded by Stephen Oakenfull who has held the role of deputy CEO since 2013.
Watters said: "With substantial strategic progress having been achieved and the company in good shape, I feel now is the right time to step down and hand over the reins. I wish Stephen and RDI every success in taking the business forward."
RDI's pretax loss widened in the year ended August 31 to GBP99.2 million from GBP79.8 million a year before. Loss on revaluation of investment property doubled to GBP113.0 million from GBP56.6 million.
Revenue fell to GBP69.0 million from GBP103.9 million.
The company declared a final dividend of 5.0 pence per share, compared to 10.0 pence a year ago, bringing its total payout for the year to 5.0 pence compared to 14.0 pence a year before.
Watters said: "Credit is due to the team at RDI for the transactions they have been able to complete in the current market conditions, in particular since the year end, which have brought pro forma retail exposure and loan-to-value down substantially to 10% and 33% respectively."
RDI is currently undergoing a portfolio restructuring with the aim of a full exit from all retail assets. On Monday, RDI announced its retail exposure is down to 12% from 28% on February 28.
Watters said on Thursday: "While there are many obvious uncertainties related to the economic impacts from Covid-19 and the UK's exit from the European Union, the risks and opportunities related to structural changes in consumer habits, environmental change and technology are likely to have a far more significant and lasting impact on real estate markets. The wholesale repositioning of our portfolio has delivered a significant realignment toward sectors and assets that are likely to benefit from these changes.
"Our immediate focus remains on completing the disposal of the residual retail assets in the UK and Germany and the ongoing streamlining of the business to focus both capital and management time."
RDI REIT shares were up 5.7% at ZAR18.88 each in Johannesburg on Thursday, and up 5.3% at 90.80 pence each in London.
By Greg Roxburgh; [email protected]
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