November 3 2025 14:00
SOUTH AFRICA
One of South Africa’s largest real estate investment trusts (Reits) Redefine Properties Limited [JSE: RDF] is in a much stronger position than it was during the thick of the pandemic, its CEO Andrew König said on Monday.
He spoke following the release of results for the financial year to end August 2025,.
Redefine delivered a 7.8% increase in distributable income, lifted its operating profit margin by 1.1 percentage points to 76.2%, and reduced its loan-to-value (LTV) ratio to 40.6%, firmly within its target range.
König said the results confirmed that Redefine ended the financial year “in far better shape than we started it, with all key metrics trending positively.”
“We’ve seen property asset values lift by R1.9bn in South Africa and hold steady in Poland. Our LTV ratio is also back within range. Importantly, we achieved an operating profit margin improvement against a backdrop of only moderate revenue growth, which is testament to the efficiency gains coming through the business,” he said.
König said early signs of rising business and consumer confidence are evident in leasing activity and investor sentiment, supported by the country’s recent removal from the FATF greylist and prospects of a sovereign credit rating upgrade.
“The finalisation of South Africa’s greylisting exit is significant and it will translate into lower costs of capital, attract more foreign investment flows, and further deepen domestic liquidity. We’re already seeing the bond market pricing that in,” he said.
“Add to that the Reserve Bank’s firm inflation targeting stance and the possibility of a rating uplift next year, and you have the makings of a tangible, rising optimism,” he said.
90 Grayston, office building
CFO Ntobeko Nyawo said broader improvements in the SA economy would benefit well- capitalised corporates.
“Our balance sheet is already in a strong position; with an interest-cover ratio of 2.2 times, 83% of debt hedged, and a weighted average cost of debt reduced to 7%. That gives us flexibility to fund growth while maintaining liquidity prudence,” he said.
Chief Operating Officer Leon Kok said Redefine’s diversified portfolio again proved its resilience, with
retail and industrial strength offsetting a still-muted office sector.
“Our portfolio mix really paid off this year. Retail and industrial delivered very pleasing results, offsetting the structural headwinds still facing offices,” he said.
Occupancies rose and rental renewal reversions improved, as asset values across all three sectors showed year-on-year gains. Retail renewal reversions moved into positive territory at 1%, and trading densities
improved, with tenants’ rental-to-turnover ratios at 7.4%, reflecting sustainable affordability. Industrial vacancies were negligible at 2.7%, supported by buoyant logistics and warehousing demand, Kok said.
In the office sector, occupancy was at 87%, and leasing volumes at 262,000 m² signed, which underscored renewed deal activity.
Redefine’s Polish platform (EPP), whose retail platform accounts for roughly 28% of group assets, delivered a strong and stable performance, the group said. EPP’s core retail portfolio maintained a 99.4% occupancy rate, while European Logistics Investments (ELI) logistics operations doubled distributable income contributions to R214m with rising occupancies (up to 96.8%) and higher market rentals.
“Poland enjoys GDP growth roughly three times that of South Africa and very low unemployment. That’s created a robust consumer market that continues to support our retail and logistics assets,” said König.
Nyawo said Redefine’s deleveraging and liquidity initiatives yielded results.
The group improved its LTV ratio from 42.3% to 40.6%, reduced debt margins in South Africa by 20 basis points, and maintained a laddered maturity profile with no near-term refinancing pressure.
“Liquidity of R6.7bn gives us room to manoeuvre,” he said.
The group disposed of R1.1bn of non-core assets during the period while reinvesting a similar amount in upgrades and energy-efficiency projects. Installed solar capacity rose 35% to 58.4 MWp, with a further 8.4 MWp in progress, a 50% increase since 2024.
Nine of Redefine’s buildings are now net-zero, and both its South African and Polish portfolios achieved GRESB scores of 81.
Kok said Redefine had been in talks with US retailer Walmart about the group taking up space in the landlords malls. He said Walmart might convert some of the Game stores which its owns through owning Massmart.
König said that while Redefine’s share price has delivered a 310% total shareholder return over five years, amid a post Covid-19 pandemic recovery, this recovery reflected more than market momentum.
“When COVID hit, our share price fell sharply, so part of that growth is off a low base. But what really matters is how fundamentally the business has transformed since
then,” he said.
“Five years ago, our strategy was scattered across multiple geographies and asset classes. Today, we’re focused, disciplined, and in control of every asset we manage. That focus has changed how Redefine looks and feels, and it shows in our performance,” he said.
Redefine expected to achieve distributable-income-per-share growth of 4% to 6% in its 2026 financial year.
alistair@propertyflash.co.za
