ANNUAL RESULTS 2009
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ANNUAL RESULTS 2009. THE MAKING OF. OUR HISTORY. 1999:Redefine was founded 2000: Listed on the JSE with total assets of R1,1-billion Market capitalisation of R400-million Asset composition 50% direct property, 50% listed securities, including Hyprop

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ANNUAL RESULTS 2009

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Annual results 2009

ANNUAL RESULTS 2009


Annual results 2009

THE MAKING OF


Our history

OUR HISTORY

1999:Redefine was founded

2000:Listed on the JSE with total assets of R1,1-billion

Market capitalisation of R400-million

Asset composition 50% direct property, 50% listed securities, including Hyprop

2002:Increased stake in Hyprop to 18%

2003:Acquired 53% of Prima Property Trust

2006:Invested offshore by acquiring 18% of CIREF PLC

Formed enterprise development initiatives with BEE partners

Increased stake in ApexHi to 12% in exchange for investment in Prima Property Trust

2007:Issued 10% of units in issue to BEE partners, increasing total BEE ownership to 23%

Acquired Spearhead Property Holdings

Increased stake in Hyprop to 27% in exchange for Sycom units

2009:Acquisition of ApexHi and Madison in R12,7-billion transaction

Increased stake in Hyprop to 33%


The merger

THE MERGER

  • ApexHi and Madison unitholders received:

    • 202 Redefine units for every 100 ApexHi A units

    • 246,8 Redefine units for every 100 ApexHi B units

    • 104 Redefine units for every 100 ApexHi C units

    • 90 Redefine units for every 100 Madison units

  • Resulted in an increase in the number of linked units in issue from

    899 037 507 to 2 654 538 299

  • Culminated in the new enlarged Redefine Income Fund, to be rebranded as Redefine Properties


Merger rationale and benefits

MERGER RATIONALE AND BENEFITS

  • Acquisition of R12,7-billion property portfolio from ApexHi

    (including Ambit)

    • rationalisation

    • economies of scale

  • Acquisition of Madison internalised the asset management function in accordance with international best practice

  • Enhance earnings

  • Attract greater interest from a wider group of investors such as tracker funds and international investors

  • Better access to funding from debt and capital markets at competitive rates

  • Increase in the Redefine linked unit price due to size and liquidity


Redefine at a glance

REDEFINE AT A GLANCE


Board of directors

BOARD OF DIRECTORS

Executive Directors

  • Wolf Cesman (Joint CEO)

  • Marc Wainer (Joint CEO)

  • Brian Azizollahoff

  • Janys Finn

  • Mike Flax

  • David Rice

Non-executive directors

  • Dines Gihwala (Chairman)

  • Greg Heron

  • Monica Khumalo

  • Gerald Leissner

  • Harish Mehta

  • Bernard Nackan

  • Di Perton


Annual results 2009

REVIEW OF 2009 RESULTS


Financial highlights

FINANCIAL HIGHLIGHTS

  • Distribution of 11,75 cents per linked unit for two months ended 31 August

  • Total distribution of 56,55 cents per linked unit for the year

  • Outperformed total returns of SA Listed Property Sector (SAPY)

    and All Share Index (ALSI)

  • Total assets of R26-billion

  • Market capitalisation of R19-billion

  • Gearing of 26%of value of properties and listed securities


Abridged income statement

ABRIDGED INCOME STATEMENT


Distributions

DISTRIBUTIONS


Abridged balance sheet

ABRIDGED BALANCE SHEET

* Includes properties held for trading and excludes properties sold but not transferred


Top 20 properties by value 1 10

TOP 20 PROPERTIES BY VALUE (1-10)


Top 20 properties by value 11 20

TOP 20 PROPERTIES BY VALUE (11-20)


Listed securities portfolio

LISTED SECURITIES PORTFOLIO

% holding in Wichford PLC increased to 19,2% post year end

Redefine owns 34% of Corovest, the asset manager of CIREF and Wichford


Top 20 tenants

TOP 20 TENANTS


Property portfolio

PROPERTY PORTFOLIO


Sectoral spread

SECTORAL SPREAD


Geographical spread

GEOGRAPHICAL SPREAD

Lettable area Gross monthly rental


Tenant profile by let area

TENANT PROFILE BY LET AREA


Tenant profile by monthly rental

TENANT PROFILE BY MONTHLY RENTAL


Vacancies per sector

VACANCIES PER SECTOR


Lease expiry profile

LEASE EXPIRY PROFILE


Borrowings

BORROWINGS

  • Weighted average cost of borrowings 9,33%

  • 87,7% of debt is fixed

  • Average length of fixes 6 years


Unitholder profile

UNITHOLDER PROFILE


Redefine closing prices

REDEFINE CLOSING PRICES

High: 741c

Close: 729c

Open: 665c

Low: 531c


Redefine vs pls index

REDEFINE VS PLS INDEX


Redefine vs sapy

REDEFINE VS SAPY


Redefine vs alsi

REDEFINE VS ALSI


Liquidity

LIQUIDITY


Fitch rating

FITCH RATING

  • Redefine is one of the few listed South African property companies with a credit rating from an international rating company, Fitch.

  • Subsequent to the merger, Fitch has reviewed and affirmed Redefine’s:

    • National Long-term secured debt rating of ‘A(zaf)’

    • National Long-term unsecured debt rating of ‘BBB(zaf)’

    • Subordinated debentures rating of ‘BB(zaf)’

  • Fitch has assigned a newly initiated short term rating of ‘F3’ which means that Redefine’s intrinsic capacity for timely payment of financial commitments is adequate

  • Rating upgraded from “Rating Watch Positive” to “Outlook Positive”


Indices

INDICES

  • Global Property Research (GPR) 250 Index

    • Largest South African listed property company on the index

  • Mid Cap segment of the MSCI Global Standard Index

    • Upgraded from Morgan Stanley’s MSCI Global Small Cap Index

      In terms of the rules, entry into the ALSI40 Index can only take place once Redefine reaches position 34 (currently position 42)


Annual results 2009

STRATEGY


Strategy

STRATEGY

  • Grow income

  • Control expenditure

  • Maintain quality of properties

  • Manage debt

  • Strategic input at Hyprop, CIREF PLC and Wichford PLC

  • Yield enhancing acquisitions

  • Streamline portfolio by disposing of non performing assets

  • Acquire quality income enhancing properties

  • Investments in other listed property companies for strategic purposes or corporate action


Strategy continued

STRATEGY continued…

  • Formally change name from Redefine Income Fund to Redefine Properties

  • Transfer all properties from subsidiary companies to Redefine Properties

  • Management and staff to create and adopt Redefine Properties culture and values

  • Introduce key employee share incentive scheme

  • Re-engineer and improve property management

    • Researching alternative and more beneficial ways of property management

    • Forecast savings may not all materialise in 2010

    • Considerable financial savings and efficiencies from mid 2010 and beyond


Challenges

CHALLENGES

  • Global financial crisis

  • Corporate failures

  • Consumer spending contraction

  • Access to bank fundingand increased bank margins

  • Containment of soaring energy costs

  • Currency volatility


Distribution outlook

DISTRIBUTION OUTLOOK

  • Barring unforeseen circumstances, total distribution for the

    year ending 31 August 2010 will be:

    Between 68 cents per unit and 71 cents per unit, an increase of

    between 20% and 25% on the total distribution for 2009.


Thanks

THANKS

  • The Merger

    • Java Capital – corporate advisors

    • All other professionals and advisors

  • Directors of Redefine, ApexHi and Madison – who retired during the year

  • Janys Finn (FD), the accounting team, PKF Auditors and Broll accounting who worked tirelessly to produce a complicated set of financial results

  • Joint CEO Marc Wainer

  • Executive directors, non executive directors, management and staff


Annual results 2009

FORTHCOMING ATTRACTIONS


Redefine international

REDEFINE INTERNATIONAL

Redefine Properties

50-55%

CIREF PLC (AIM listed)

to become

Redefine International

(LSE Listed)

Inward Listing

Redefine International

JSE Listed

75-80%

22%

Redefine International

Manco

Wichford PLC

Other

Direct properties

100%

Wichford

Manco


Redefine international1

REDEFINE INTERNATIONAL

CIREF PLC


Redefine international2

REDEFINE INTERNATIONAL

  • Wichford PLC


Redefine international3

REDEFINE INTERNATIONAL

WATCH THIS SPACE


Annual results 2009

THE END


Annual results 2009

OR IS IT JUST THE BEGINNING?


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