28th Oct 2015 08:03
LONDON (Alliance News) - Redefine International PLC, real estate investment trust listed in London, on Wednesday said the large amount of cash it held on its balance sheet in the second half temporarily dragged on earnings available for distribution, though it has since deployed that cash on acquiring a portfolio of 19 properties valued at GBP439.9 million.
The FTSE 250 real estate investor revealed on September 7 the agreement to acquire the portfolio from the Aegon UK Property Fund for GBP455.7 million after costs, in what was described by the company as a "transformational" deal to improve the quality and scale of its overall portfolio.
Reporting results for the financial year to August 31, Redefine showed that earnings available for distribution per share fell to 3.2 pence from 3.3p over the course of that time. Full-year dividends increased to 3.25p from 3.20p.
Adjusted net asset value, a measure of the company's worth, was up to 41.7p per share from 40.5p. Its loan to value ratio was reduced to 40.7% from 48.1%.
"Following a busy year which has been defined by a major refocusing of the business, we have announced a solid set of results, which show an increase in earnings and NAV as well as reduced leverage. Our continued disciplined investment approach, following the successful equity raise completed in March 2015, has meant that a large cash balance was held throughout the second half of the financial year causing a temporary cash drag on earnings available for distribution," Chief Executive Mike Watters said in a statement.
"However this cash, together with the proceeds of the Cromwell share sale, has now been deployed in the AUK transaction, and our confidence, given the quality of the enlarged portfolio and the outlook for the business is reflected in an increased dividend of 3.25p per share for the year," Watters said.
By Samuel Agini; [email protected]; @samuelagini
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