25th Apr 2018 09:42
LONDON (Alliance News) - London and Johannesburg-listed property firm RDI REIT PLC hiked its dividend Wednesday as it said its interim net asset value grew 2.2% and total return 11% amid an increased focus on non-retail properties.
For the six months ended February, NAV per share rose to 42.3 pence from 41.4 pence the year before. Total annualised return - including share price performance and dividends - was 11% for the period.
Gross rental income also grew 2.1% on a like-for-like basis after a "strong performance across the majority of the portfolio." Occupancy, however, dropped modestly to 97.3% from 97.7% at the end of August but remained "high", the company explained.
RDI proposed a 1.35 pence per share interim dividend, up 3.9%.
"We continue to make good progress against our strategic priorities," RDI Chief Executive Officer Mike Watters said. "The income producing qualities of our portfolio have improved through further recycling of capital out of low growth assets into assets and sectors aligned with our strategy of delivering long term sustainable and growing income. We are also seeing an increasing opportunity for real estate owners to become high quality service providers. We are well positioned to take advantage of this trend, given our operational platforms and experience with our hotel portfolio and the more recent expansion into London serviced offices."
During the six months, RDI realised GBP211.8 million from disposals which represented an average premium of 8.7% on their carrying value.
On the acquisition front, RDI increased its stake in the International Hotel Properties hotel portfolio to 74.1% for GBP104.4 million and bought an 80% interest in a London serviced office portfolio for GBP161.7 million. Overall, RDI reduced its exposure to retail assets to 45.3% from 60.0% six months earlier.
"We are confident that our income-led business model, designed to deliver market leading shareholder distributions, remains attractive in a world starved of predictable and recurring income," Watters added.
Share in RDI were 0.3% higher at 36.37 pence in London on Wednesday, 1.9% higher at ZAR6.30 in Johannesburg.
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