The company, which released its interim results on Wednesday, grew its earnings by nearly 20% in the six months to February, compared with the same period last year, on strongly performing assets in the UK and Germany.
Earnings available for distribution grew from £17.9m to £21.4m. This growth led to the company increasing its interim dividend 6.7% to 1.6p per share.
Redefine International CEO Mike Watters said the company's assets in the UK and Germany had performed especially well, due to strong consumer spending.
"These two countries' economies are performing well. This has resulted in solid returns from our retail assets but also from our hotels and offices.
"I appreciate that other South African companies are trying to get a piece of the market but we are firmly positioned. It will take a while for smaller South African funds to gain a footing in these markets," said Watters.
"Our main competition for acquisitions is currently coming from US and Chinese investment groups," he said.
Watters said the company had strong contracts in place with leading retailers in the UK and German markets. A number of these operated in discount retailing.
"Discount and convenience retailing is one sector in particular that remains on a growth trajectory with operators such as B&M Bargains, Home Bargains, Poundland and Iceland looking to expand their UK footprint."
The company had also reworked its portfolio and sold properties that had matured or it felt were non-core. "We managed to sell some Swiss assets and government-let properties, which we believe would not fit into our portfolio going forward," said Watters.
Following the asset sales, more than 40% of the Redefine group's £1bn portfolio was located in London and in Germany.
"The focus for new acquisitions will remain in these two countries; however, we will still own assets in the Netherlands, Switzerland and Australia," Watters said.
Investec Asset Management's sector head for property, Peter Clark, said while income growth was strong, currency exchange rates affected the capital growth of Redefine International.
"It was a solid set of results with strong income growth but limited capital growth, which was negatively affected by the weak euro and Australian dollar, which represent circa 32% of the company's exposure," he said.
He said Redefine International remained an attractive stock to invest in when trying to hedge against rand weakness.
"Management have done very well at positioning the portfolio with the majority of the legacy non-core assets largely disposed.
"Growth is expected to be limited but the stock offers an attractive hard currency yield."
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
