26th Apr 2016 07:28
LONDON (Alliance News) - Real estate investor Redefine International PLC said Tuesday its first half profit came in at less than a quarter of what it was a year earlier as it booked a heavy loss on the revaluation of its investment property.
The FTSE 250-listed company said its pretax profit for the six months ended February 29 was GBP8.4 million from GBP38.5 million for the same period a year earlier, after it made a GBP17.3 million loss on revaluation of investment property from a gain of GBP10.5 million a year earlier.
This more than offset the slight rise in revenue to GBP41.5 million from GBP40.4 million, Redefine said, although the company noted occupancy continued to improve, rising to 98.1% in the period, from 97.6% in the same period a year earlier.
Redefine hiked its interim dividend to 1.625 pence per share from 1.60p, saying it was in a "stronger position and our enlarged portfolio is fully aligned with the group's strategy of allocating capital to assets with income and capital growth potential", following its acquisition of the AUK portfolio in March.
Redefine said, after this purchase, the value of its portfolio increased by around 50% to GBP1.50 billion from GBP1.05 billion a year earlier.
"We will continue to enhance the portfolio through value creation initiatives which are focused on increasing income, together with active recycling of capital from underperforming and more mature assets into new opportunities," Redefine said in the statement.
"We remain confident in our ability to deliver a resilient and secure income stream, despite the current economic and political uncertainty surrounding the EU referendum in the UK. Our portfolio, diversified by both sector and geography, has limited exposure to the financial services sector and is therefore likely to be relatively insulated from any potential referendum outcome," Redefine added.
Shares in Redefine were up 0.2% at 46.68p on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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