Sunday, January 16

Redefinir pays dividends again and makes a surprise offer for EPP

Redefine Properties, the diversified real estate investment trust listed on JSE (Reit), Redefine Properties, officially returned to pay a full annual dividend on Monday, but also announced a surprise move to acquire full control of the based property accountant. in Poland EPP and eliminate the company.

Publishing its annual results for the year ending August 31, 2021, the group declared a dividend of 60.12 cents per share with a 100% payout, unlike many of its Reit peers who have opted for a Lower payment rate as the Covid-19 pandemic continues to affect the commercial property sector.

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This comes after Redefine made the difficult decision not to pay dividends for its 2020 financial year, following the harsher initial financial fallout from Covid-19 last year.


R9.8 billion reduction in Redefine’s property portfolio

Vukile and redefine dividend payments differ due to impact of Covid-19

“Distributable income per share for the year ended August 31, 2021 amounted to 52.96 [FY20: 51.50] cents, an increase of 2.8% over the previous year, ”Redefine noted in its latest Sens results statement.

“Taxable income includes unrealized foreign exchange gains of R350.4 million due to rand appreciation and is non-recurring. The board has declared a dividend of 60.12 [FY20: 0.00] cents per share, which will reduce the taxable income of the company by the amount of the dividend, ”the group also pointed out.

But perhaps the most important announcement of the day was that Redefine also issued a warning with its results, related to a share exchange offer to acquire the rest of EPP. Redefine is already one of EPP’s main shareholders.

The group did not mention any specific value of the agreement proposed by the PPE.

“Redefine has submitted a non-binding proposal to the EPP board that, if approved by both the EPP board and, to the extent necessary, by the EPP and Redefine shareholders, will constitute EPP as an unlisted subsidiary of Redefine.” Reit noted in Sens.

“In terms of the proposal, and on the condition that EPP shareholders approve the exclusion of EPP shares in both JSE and LuxSE, Redefine will make an offer to EPP shareholders that will allow EPP shareholders to exchange its EPP shares for Redefine shares in an independently verified fair exchange index, ”he said.

“The proposed transaction would be conditional, among other things, on EPP implementing certain restructuring transactions [including the disposal of non-prime property portfolios to joint venture companies to be owned by EPP and third party investors] which will significantly strengthen EPP’s balance sheet, generate much-needed liquidity, and substantially reduce EPP’s LTV [loan-to-value ratio or gearing level]”Redefine added.

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