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Press archive

Redefine eyes European logistics as streamlined portfolio is positioned for the recovery
01 December 2020

Distributable income for year ended 31 August declines 49% due to dividends withheld offshore, impact of hard lockdown locallyJohannesburg, 1 December 2020 – Redefine Properties, which turned 21 as a listed company this year, is well placed to benefit from logistics growth in Poland after hard lockdown restrictions locally and dividends withheld by offshore investments significantly dampened results for the year ended 31 August 2020.Results for the year ended 31 August 2020 showed how the tough trading conditions locally and overseas brought on by COVID-19 served to drag distributable income per share down by 49.0% to 51.50 cents, from 101.00 cents last year. Total revenue, however, showed only a marginal decline of 0.1% and signs of green shoots have begun to appear. Collections from tenants increased to a pleasing 96% and 97% of billings during September and October after averaging only 84% during the worst of the COVID-19 crisis.“Redefine continues to streamline its asset platform and strengthen its balance sheet to withstand ongoing volatility and uncertainty, at the same time ensuring it is poised to benefit when conditions improve,” says CEO, Andrew König.An offshore asset base valued at R15.6 billion (FY19: R22.6 billion) – compared with diversified local property assets of R65.4 billion (FY19: R72.8 billion) – continues to provide adequate geographic diversification. And while Redefine is in the process of exiting the Australian market, it is building a pipeline of exciting opportunities in the Polish logistics space.“We have put in the hard work and are making great strides towards building tangibly for the medium term. We are leveraging off operational efficiencies, making significant inroads in reducing our loan-to-value ratio, being ruthless rather than reckless in right-sizing our asset footprint, and are set to benefit from growth in Poland,” says König.König puts the Polish expansion potential into perspective: Gross leasable area of 527 000 square metres has been expanded by 160 000 square metres and there is a pipeline to take this exposure to well over a million square metres over the next year or two, utilising the EUR163 million (R3.2 billion) sourced from introducing an equity investor into European Logistics Investment.“We are still expanding despite constraints to the capital base and see a lot of opportunity in logistics in Poland, based on the impetus placed by the government on infrastructure investment, but also thanks to growing demand for warehouse space as more people move to e-commerce channels,” he says.He also points out that Redefine is not distressed from a cash point of view and has “a lot of liquidity to come our way, having concluded disposals totalling R13.4 billion, of which only R7.1 billion was banked in 2020.”During the year, local property disposals realised R894 million, the exit from RDI REIT PLC raised GBP106.3 million (R2.3 billion), and the residual investment in Cromwell was sold for AUD53.3 million (R674.6 million).Redefine’s top priority during the year under review was to address the group’s loan-to-value ratio, says CFO, Leon Kok.“Our LTV improvement initiatives – which included being the first SA REIT to implement a dividend payout policy and exiting non-core investments in the UK and Australia – yielded an LTV reduction of 5.7%. However, the destructive impact of COVID-19 had the opposite effect on asset values, increasing the LTV by 7.8% – negating the improvement initiatives,” he says.“Work on the LTV is therefore not yet done, and to achieve a sub-40% LTV by August 2021, will require further initiatives. A clear pathway has been set to achieving this target, involving further optimisation of the property asset base, limiting the cash outflow from dividends, as well as the completion of the sale of our interest in Journal's two student accommodation properties in Australia,” he says.In the interim, Redefine’s board has deferred a decision on the declaration of a dividend until February 2021, as it is working on a mechanism to ensure there is no adverse impact on LTV from the payment of a dividend. This is subject to the requisite regulatory approvals, and shareholders will be informed as soon as this has been concluded, with full details on the timeline and structure to be provided.“I believe we have set a new floor on our asset value to sustain value creation going forward, having recorded core asset valuation write-downs of R9.8 billion,” says König. However, this does not escape the stark reality that Redefine’s local property portfolio performance was heavily impacted by the restrictions imposed by government to curb the spread of the virus. Kok says rental relief packages to support the sustainability of tenants amounted to R318.5 million, while the provision for credit losses has increased by R310.4 million. Kok reports that the active portfolio vacancy rate increased during the period to 7.4% from 5.1% in the same period last year, while the tenant retention rate was 90.8%, from 92.2% a year ago.The role of ESG has been elevated with Redefine reaching the milestone of having its hundredth building green star rated during the financial year and was also the first local REIT signatory to the UN global climate change compact.König adds: “We are delighted to announce that Ntobeko Nyawo has been appointed as the company’s chief financial officer from 1 March 2021, which frees up Leon Kok to take over as chief operating officer from David Rice who recently retired.” “COVID-19 has accelerated the execution of our strategic priorities, and we have worked very hard in deepening engagement with intensified collaboration and heightened our focus on ESG, with more to come in the new year,” says König. However, he says the outlook continues to be vulnerable to the performance of offshore assets after the rationalisation of the asset base.“We are focusing on liquidity and cash flow management but remain mindful of the opportunities that are presenting themselves. We are building for tomorrow today through collaboration, differentiation and innovation.“We are looking through the short-term challenges and trying not to be distracted from our purpose, so that we become more relevant to our users’ needs and continue to attract and retain quality tenants, which is the lifeblood of our business,” concludes König. 

Redefine appoints Ntobeko Nyawo as new CFO, as Leon Kok takes up reins as COO
01 December 2020

Johannesburg, 1 December 2020 – Redefine Properties (JSE:RDF) has appointed the highly experienced Ntobeko Nyawo as its new CFO, with effect from 1 March 2021.A seasoned executive and qualified CA with over 16 years’ experience, Ntobeko joins from Stanlib, where he currently serves as chief operating officer (COO). Prior to that, he was chief financial officer of Alexander Forbes Emerging Markets, responsible for driving African expansion in partnership with the chief executive officer.“We are delighted to welcome Ntobeko to our team. His depth of experience as a finance and investment executive, on audit and risk committees and in key transformational roles, including in the migration to digital channels, makes him an ideal candidate to add significant value to the core leadership of our business,” says Redefine chairperson, Sipho Pityana.“This appointment also frees up Leon Kok to take over as COO at a crucial time. Leon’s depth of experience in finance and property and his leadership will help take us forward as we chart an exciting new path, while navigating ongoing economic volatility,” concludes Pityana. 

A mixed shopping bag is forecast for retailers this Black Friday
16 November 2020

Rosebank, South Africa, 16 November 2020: The weeks that followed the hard lockdown at the end of March have been inconceivable for retailers. The measures undertaken by the Government to reduce the transmission of the coronavirus that included mandatory isolation brought a sizeable chunk of the economy to a standstill. Retail, one of the mainstays, ground to a halt as a consequence with only essential retail permitted to remain open and trade. The unprecedented measures in large part can be credited for SA’s stellar management of the public health crisis which has been said to be better than most developed countries. With most parts of the economy now open, and many employees back in the offices, retailers are looking forward in anticipation to the days surrounding the American Thanksgiving holiday, a big draw for cash-strapped consumers. At home, Black Friday conjures up images of snaking queues and crowded stores, however it is likely to be muted this year due to the pandemic, as shoppers will still be expected to socially distance and wear masks in-store. “As part of the health regulations, stores will also be expected to limit the number of people inside at any one time. We are already seeing retailers working around this by extending promotions rather than limiting it to just a few days. We expect to see a Black November or even a Black December as retailers go all out to capture the available rands and cents,” says Nashil Chotoki, National Asset Manager, Retail, Redefine Properties.  Creating COVID-19 safe environments for consumers will also differentiate retailers and shopping centres, which can become a driver of footfall and spend. By and large, all sectors in the country and more importantly the retail sector has really played its part in ensuring consumers adhere to public health guidelines by enforcing the mask, sanitising and social distancing rules. With the threat of coronavirus still a clear and present danger, malls and national retailers can’t risk attracting large crowds as seen in the preceding years, often camping outside and queueing for hours for deep discounts. Black Friday is just one more thing the pandemic has upended in 2020. But it isn’t all bad news for consumers. “Retailers are doing their best to safely draw in customers and we have seen a better than expected recovery of retail footfall and sales. Since reopening, convenience malls have been performing better than large shopping centres as customers feel safer, in respect to COVID- 19, in outdoor, open air malls compared to enclosed shopping environments,” adds Chotoki. Black Friday is also getting a pandemic makeover like everything else this year. Instead of waiting for Cyber Monday, shoppers will be able to buy online, any and all discounted products as deals that are usually reserved for in-store shopping will appear online during the month. In and through the pandemic, shoppers moved to the safer confines of ‘online’ in greater numbers, hoping to avoid crowds at stores, promise of contactless payments and retailers were quick to pivot adjusting their online offerings accordingly.“COVID-19 has accelerated online sales, in particular groceries, however most online platforms are still operating at a loss and therefore we expect ‘click and collect’ to be more sustainable due to the lower cost of delivery.” adds Chotoki.“While online sales are growing, we do not anticipate the South African market  to reach levels  being seen in developed countries in the foreseeable future mainly due to cost, access to the internet and logistics.”Despite the euphoria around Black Friday and the sales surge that follows, retailers are likely to run fewer discounting promotions compared to last year’s “doorbusting” deals as they cannot afford the reduction in margin following the series of COVID-19-related lockdowns. “While retailers have accepted that it is likely to be a muted affair, they can draw comfort from a consumer base that feels a little more confident about spending, thanks to historically low interest rates which have partially cushioned the impact of lower salaries and employment on retail sales,” says Chotoki in conclusion. 

Redefine Europe completes purchase of M1 Marki in Poland. Sale of student accommodation in Australia receives greenlight from regulator.
05 November 2020

Rosebank, South Africa, 5 November 2020:  Redefine Europe, a wholly owned subsidiary of JSE-listed diversified Real Estate Investment Trust, Redefine Properties, has completed its purchase of M1 Marki Commercial Centre located in Marki near Warsaw, Poland. Redefine Europe will acquire M1 Marki from the Chariot Group for EUR58.9 million. As part of the transaction, Redefine will sell its 25% equity interest in Chariot Top Group B.V. the sole shareholder of Chariot Group back to the company for EUR55.2 million.  M1 Marki, with a gross lettable area of approximately 47 444sqm, comprises two main retail buildings, the M1 shopping mall and a stand-alone Obi DIY store, as well as three smaller buildings (Norauto, Burger King and a Shell petrol station). The centre along with neighbouring properties (IKEA, Decathlon, Agata Meble and Homepark Targowek retail park) forms one of the biggest retail clusters in Warsaw. Andrew König, CEO, Redefine Properties says, “The transaction simplifies our offshore asset platform and also facilitates the exit of a minority held investment yielding non-recurring income in exchange for a wholly owned asset generating a recurring income stream.”“Poland is an attractive market for us due to its size and scale and M1 Marki is located in Warsaw’s premier retail node. The transaction aligns to our strategic intent of buying into assets which offer good long value appreciation prospects.”Redefine Europe was set up by Redefine in 2018 for the purpose of holding Redefine’s European property assets. The sale of Redefine’s Australian student accommodation portfolio comprising Uni Place, Leicester Street and Central, Swanston Street has now received the greenlight from the Treasurer of the Commonwealth of Australia. Accordingly, settlement of the Uni Place, Leicester Street sale agreement is expected to be completed on or about 11 December 2020. The settlement of Central, Swanston Street remains subject to COVID-19 pandemic travel restrictions and carries a long stop date of 30 June 2021. “Our asset platform has been significantly readjusted for prevailing conditions and we are now more focused on a single external geography offshore in Poland. This simplifies our asset platform, improves our risk profile, bolsters our liquidity position and eases our loan to value ratio, which has been under a lot of pressure,” concludes König.  

Redefine launches two programmes to support community development in Soweto
04 November 2020

Soweto, South Africa – 04 November 2020: In a move that will help community organisations build capacity and sustain themselves, now more than ever in the post-pandemic era, JSE-listed diversified Real Estate Investment Trust, Redefine Properties, has launched two programmes, one for Non-Profit Organisations (NPOs) and one targeting Small, Micro and Medium Enterprises (SMMEs) in Soweto. The programmes, designed to support NPOs and SMMEs working and operating in the communities, started on 1 September 2020, and will run over a period of 12 months. In addition to causing a global public health crisis, some of the measures taken to prevent the spread of COVID-19, such as lockdown and social distancing slowed down the ability of SMMEs to contribute meaningfully to the economy. Also, the severity of the pandemic drowned out other development issues outside of healthcare. Non-profits tackling key issues in the community now need to raise the visibility of their advocacy projects to attract funding.These development programmes are the first to be undertaken following community engagements conducted late last year. Redefine held workshops with the community around Maponya Mall as part of its Challenge Convention, an asset-based community development initiative. During the Challenge Convention a number of key stakeholders highlighted the real challenges the community was faced with.Three main priorities emerged during these discussions at the time, support for NPOs, SMMEs and the youth. Supporting the recovery of this vulnerable cohort presents a golden opportunity to build on the strides they were making before COVID-19 in creating jobs and developing communities. “As communities around our properties attempt to revive the economy, SMMEs face the same question as us, how do we reopen? How do we reinvent our business model? says Marijke Coetzee, Head of Marketing and Communications, Redefine Properties.“It is critical that we continue to build the resilience of projects already being run in the communities and also make sure the SMMEs are capacitated to grow and prosper in a constrained economy.  The programmes target people and projects where they can have the greatest economic and social impact.” The NPO Development Programme will be implemented by the NSBM Consortium, which includes the National Institute Community Development and Management Trust, South African Association of Youth Clubs, Be Unlimited and Mvelwabo Living Lounge. The programme consists of 12-module outcomes-based training and includes formative and summative assessments of all the participants. It will also focus on key skills like financial management, operations, governance, compliance, leadership and knowledge transfer vital to running successful NPOs as well as leadership development, coaching and mentoring.  12 local NPOs operating around the Maponya Mall in Soweto have been selected, and each NPO will in turn elect three individuals to attend the training programme.  The programme will include:•    25 days of contact time •    360 hours’ worth of coaching and mentoring•    Six hours of leadership and personal transformation sessions per candidate •    18 hours of collective reflective sessions on interpersonal dynamics and team development       throughout the yearThe SMME Development Programme will be implemented by Siwaju Consulting. The programme is aimed at building businesses to survive and thrive in a constrained economy and create employment opportunities for the local youth. It will target businesses at various stages of their development, both in the informal and formal sector. 30 individual entrepreneurs have been selected to participate in the programme and will consist of the following outputs:•    18 days of contact time•    240 hours of business coaching and mentorship•    An online learner management system which will host e-learning material and a knowledge                library for the participants to utilise throughout the periodGiven the existing challenges of COVID-19, and restrictions on gatherings, the programmes will be delivered with strict adherence to health guidelines including measures not limited to social distancing, sanitising, wearing of masks etc. Both programmes will use a blended approach to enhance learning and development including online classroom presentations, one-on-one business coaching as well as digital learning. All participants in the programmes will be provided with the tools required to ensure that learning outcomes are not constrained by not having access to technology. The implementation of the Youth Development Programme will coincide with the formalisation of “The Hub” at Maponya Mall. The multi-purpose space will seek to address the needs identified by the community, particularly the youth, to connect them to resources that will promote participation in the local economy. Further details will be announced in due course. “Investing in the communities is about community engagement and this is at the core of Redefine’s way of business, leveraging spaces we manage to change the lives and the future of the people and communities around them. The Challenge Convention is our investment in local people and projects to solve local problems,” adds Coetzee in conclusion. “I want to take this opportunity to thank the partners who have come on board to help us deliver on the commitments we made to the community.” 

Accelerating e-commerce trends and consolidation of supply chains proving to be COVID-19’s silver lining for Polish logistics sector
23 October 2020

Rosebank, South Africa, 23 October 2020: While sentiment towards global real estate has fallen sharply, the outlook for the Polish logistics sector is proving to be COVID-19’s silver lining. Exceptional demand from tenants for space close to urban clusters, growing preference for e-groceries and a rethink of supply chains are combining to drive the sector forward according to Poland-focused European Logistics Investment (ELI). Since 2018, Netherlands based ELI, in which Redefine Properties has a 46.5% equity interest, has developed eight assets, with another five under construction, and six under due diligence for future development. ELI consists of a Polish-focused logistics platform of approximately 527 000sqm of standing assets, 145 000sqm of assets under development and over 1 million sqm of potential development pipeline. Andrew König, CEO, Redefine Properties says, “We continue to prioritise efforts and leverage opportunities to expand through the development of well-located assets occupied by high-quality tenants. Our strategy is centred on creating a well-diversified and leading Polish logistics platform capitalising on the strong economic and real estate fundamentals in the sector.” The sector’s buoyancy can be attributed to factors like construction lead times, which tend to be relatively short, as well as low capital expenditure. In times of volatility, assets that require smaller capital outlay can be appealing because of their capacity to preserve investor returns. “We see a huge potential to create a large and diversified portfolio with a good mix between built-to-suit, inner-city, multi-tenanted and single-tenanted developments in prime nodes. Over the next five to seven years, we will be looking to increase our Polish industrial assets to up to 2 million sqm in size and target EUR1 billion in gross asset value,” adds König.“Poland is a prime location for the logistics sector due to the country's position in central Europe. Moreover, it is a liquid real estate market with high investor appeal and producing hard currency free cashflow.” Occupier demand in Poland continues to be driven, among other factors, by e-commerce with small warehousing units within the inner city areas and last mile facilities close to urban centres much in demand and leading to higher rentals and asset values. Poland is also fast becoming a significant logistics hub for international players and is very competitive compared with Western Europe in terms of rental rates and labour costs. “The industrial sector had its best six months, until June 2020. Twenty deals with a total volume of almost EUR1.2 billion were recorded, mainly driven by large portfolio transactions. Prime warehouse yields stand at 6.25% with quality assets, with long leased assets trading at sub 5.00%, and Warsaw inner city projects at around 5.50%,” says Pieter Prinsloo, Redefine Europe CEO.  “As the popularity of online shopping grows, the demand from occupiers will also increase. During the pandemic, consumers rediscovered the convenience of online shopping, even adding groceries to their checkout baskets. As retailers and logistics firms race to deliver a seamless experience and faster services, demand is likely to rise sharply for light industrial properties in close proximity to city centres”. The sector benefitted from a spike in e-commerce and courier service activity during the COVID-19 period resulting in some tenants taking short-term leases to secure additional space. This was as a result of many companies holding greater amounts of inventory to buffer their supply-chain responsiveness. Poland is also seeing a wave of new businesses wanting to move manufacturing away from Asia and closer to customers in Europe. The supply chain disruptions from COVID-19 is proving to be the biggest motivator. “Quality assets are our competitive edge and we have a substantial development pipeline in prime investment markets and locations. Our efforts to strengthen the balance sheet continue and where we can, we will refinance developments on completion at better interest rates as the lending market improves,” concludes König.    “We follow a simple recipe for success, secure long-term leases with high-quality tenants, maintaining low operational expenses while optimising capital structures, as well as ensuring transparency and regulatory compliance. We focus on creating sustained value.”

Redefine annual results to be released on Monday, 30 November 2020
08 October 2020

8 October 2020 - The COVID-19 pandemic continues to wreak havoc everywhere – and South Africa is no exception. At Redefine we are continuing to adapt to the “new normal” and are ensuring our business is on track and functioning well.We will provide more information on our plans and strategic initiatives during our upcoming annual results presentation in November.Please be aware, however, that in order to accommodate the external auditors’ requirement for added audit emphasis, particularly around asset valuations as a result of the impact of the COVID-19 pandemic, the finalisation of Redefine’s financial results for the year ended 31 August 2020 (“financial results”) may be delayed. Accordingly, the announcement of our annual results has been postponed from Monday 9 November, to Monday 30 November 2020. 

Redefine restructures Mall of the South put arrangement
06 October 2020

Rosebank, South Africa, 06 October 2020 - JSE-listed diversified Real Estate Investment Trust (REIT) Redefine Properties is pleased to announce that it has reached a mutually beneficial and alternative arrangement relating to the conclusion of the sale of the Mall of the South (MOTS). As part of the agreement, the 73 111sqm regional shopping centre in Aspen Hills, south of Johannesburg will be acquired by a limited liability special purpose vehicle (SPV) for R1.76 billion in cash. RMB Investments and Advisory Proprietary Limited will hold an 80% equity interest in the SPV and Redefine 20%. The deal will be funded through a loan agreement with RMB. The transaction is expected to close before 1 November 2020 once all conditions are met, including approval by the Competition Commission and other usual approvals. Construction of MOTS began during 2013, and at that time the property was considered to be an attractive asset to complement Redefine’s retail property portfolio. In order to secure participation in the development, Redefine entered into a structured financing transaction with Zenprop and RMB, which would allow or require Redefine to purchase MOTS upon the occurrence of certain events. “Given that circumstances had changed dramatically, clearly unforeseen at the time of entering the put agreements, all the parties agreed to engage constructively to restructure the put arrangements,” says Andrew König, CEO, Redefine Properties. “The restructure allows additional time for MOTS to recalibrate to the post-COVID-19 retail real estate environment and provides Redefine with the opportunity to either acquire or dispose MOTS over a three-year period. We do not anticipate the restructured arrangement to have a significant adverse impact on our loan-to-value ratio.”  König reiterated his views expressed at the pre-close briefing for the year ending 31 August 2020 that “property fundamentals are going to be challenged for the rest of 2020 and beyond” due to unprecedented and evolving market conditions. The coronavirus pandemic has dealt a blow to retail tenants and landlords already struggling with declining disposable incomes and a sluggish economy. The public health crisis temporarily closed malls nationwide at the end of March, when the Government enforced a strict lockdown, the hardest the world has seen. The transaction constitutes a category 2 transaction in terms of the JSE Listings Requirements and is not subject to approval by Redefine shareholders.  

Redefine shines yet again at EY Excellence in Integrated Reporting Awards 2020
18 September 2020

18 September 2020 - Our consistent ranking is a testament to our commitment to the highest standards of environmental, social and governance reporting and ethical approaches in our disclosures. It also underscores our approach to integrated thinking and the partnerships we share with our stakeholders by presenting information in an engaging and transparent manner. A top 10 honouree since 2015, Redefine has made it two in a row with a third place with honours ranking this year in the latest EY Excellence in Integrated Reporting awards for the top 100 JSE-listed companies.Our integrated report celebrates our efforts to improve the built environment for people and communities by creating, managing, and investing in spaces in a manner that changes lives. The report has grown to become a crucial tool in communicating to our stakeholders, the material economic, social and environmental impacts, risks and opportunities in building a sustainable business. Redefine was yet again the only REIT in the top 10.The purpose of the awards is to encourage and benchmark standards of excellence in the quality of integrated reporting to investors and other stakeholders in South Africa’s listed company sector. The awards are based on how well companies explain to stakeholders how they create value over time.The recognition strengthens our resolve to further embed key sustainability issues in our strategy and present information in a manner that enables stakeholders to analyse and assess our ability to create and sustain value in the medium- to long-term horizon.Property is our business, but our values run deep into our ethical foundation like roots. Our emphasis on monitoring, measuring and reporting on our ESG obligations has allowed us to thrive and enabled Redefine to be transparent and accurate in reporting into all aspects of performance. It also guides the strategic choices we make and enables us to stay on course to deliver sustainable value.According to the adjudicators, the best reports provide an understanding of short- to long-term risks while providing an excellent description of the group’s business model, including primary business activities as well as the outcomes.While we have developed our ESG strategy over the past few years, the COVID-19 pandemic has underscored the importance of embedding ESG considerations in our business strategy to ensure sustainability and has prompted us to accelerate the execution thereof.The recognition once again demonstrates our leadership in integrated reporting and highlights our commitment to transparency, disclosure and value creation. We are deeply encouraged and will continue to integrate sustainability considerations into everything we do.  

Redefine Debt Capital Market investors show support for temporary relaxation of corporate LTV
27 August 2020

Rosebank, South Africa, 27 August 2020 – Redefine Properties has entered into a temporary agreement with its Debt Capital Market investors to relax the corporate loan-to-value (LTV) covenant from 50% to 55% for the measurement periods of 31 August 2020 and 28 February 2021. The resolution was approved with overwhelming support, with 98% of the value of the votes cast in favour of the relaxation.  Pursuant to the Terms and Conditions of the Domestic Medium-Term Note Programme, noteholders approved that following the financial half year ending 28 February 2021, the LTV covenant will revert to 50% for the financial year ending 31 August 2021 and thereafter.“The agreement provides us with additional headroom to absorb anticipated headwinds brought about by the COVID-19 pandemic,” says Andrew König, CEO, Redefine Properties.“We deeply appreciate the support and confidence in Redefine shown by our Debt Capital Market investors, as well as the collaborative spirit adopted by all parties to achieve an outcome which is in the interests of all stakeholders.”At the pre-close presentation, Redefine confirmed that its asset platform had been significantly readjusted for prevailing conditions, and the company was now more focused on a single external geography offshore in Poland. The reduction in geographies was to reduce the overall risk profile, improve the liquidity position and ease the loan to value ratio, which has been under a lot of pressure.“As the economy recovers, we will emerge stronger with an enhanced ability to execute on our key strategies which include managing risk through a streamlined, more focused offshore asset platform and zoning in resolutely on high-quality, well-located domestic assets,” König adds. The early action on balance sheet strengthening and selling non-core assets has meant that Redefine has access to R3.8 billion in undrawn access facilities, while having liquidity headroom to absorb as much as a 50% rental decline and 100% dividend withholding from foreign investments.  

Redefine makes significant strides in refocusing offshore property platform after remaining true to its risk diversification strategy
24 August 2020

Johannesburg, 24 August 2020 – Managing risk through a streamlined, more focused offshore asset platform and zoning in resolutely on high quality, well-located domestic assets have helped Redefine lay the foundations for future growth when the COVID-19 uncertainty and volatility slows.However, at the same time, CEO Andrew Konig tells investors in the pre-close briefing for the year ending 31 August that “property fundamentals are going to be challenged for the rest of 2020 and beyond” due to unprecedented and evolving market conditions.Konig says Redefine’s asset platform has been significantly readjusted for prevailing conditions and the company is now more focused on a single external geography offshore in Poland.“This reduces our risk profile, improves our liquidity position and eases our loan to value ratio, which has been under a lot of pressure.”The sale of Redefine’s stake in UK fund RDI Reit for R2.3bn in June has enabled it to focus on local and East European investments. Other recent changes to streamline the business include the sale of its 90% interest in two Australian student accommodation facilities, as well as its residual interest in Cromwell Property Group. The elimination of non-recurring income also comes on stream through the acquisition of 100% of the equity value in M1 Marki from Chariot for Euro 122.8 million. Redefine owns 25% of Chariot, which will be disposed of, as part of the transaction, to settle the bulk of M1 Marki’s purchase consideration. CFO Leon Kok tells investors that early action on balance sheet strengthening and selling non-core assets means Redefine has undrawn access to R3.8 billion in cash, while having liquidity headroom to absorb as much as a 50% rental decline and 100% dividend withholding from foreign investments.Says Kok: “We have not yet seen a dramatic loss or material increase in lease cancellations – which is why our attitude towards rental relief has been generous. While we realise there may be short-term pain, our emphasis remains on sustainability as we would rather retain tenants for the long term.” He says stringent liquidity and risk management practices – which were established well ahead of COVID– now stand the company in good stead. “We are fortunate to have sufficient headroom to absorb headwinds if the recovery is slow.”He says rental relief in the second half has amounted to approximately R270m, with an increase in rental arrears of approximately R400m over the five months of the various levels of lockdown. Average cash collections over this period have amounted to about 82% of monthly gross billings. However, the brunt of this occurred during the hard lockdown in April and May and it has since “recovered to some extent”.Embracing its commitment to sustainability, Redefine supported its suppliers despite not being in receipt of any or receiving limited service delivery, such as cleaning and security services, so they did not have to suffer layoffs.“This has ensured our relationships remain entrenched and places us in a strong position to continue providing high quality services during and after the lockdown,” says Kok.However, he emphasizes that the next three months “remain critical, as the economy and property market is not out of the woods yet”. The focus therefore remains on keeping liquidity levels bolstered, focusing on cutting back on non-essential expenditure, while still supporting tenants through rental relief.Following recent news that Redefine disputed the validity of the put option exercised by property investment and development company Zenprop and RMB to sell the Mall of the South, Konig is pleased to tell investors that the parties are engaged in constructive discussions to resolve the dispute, which is expected to result in a mutually satisfactory outcome for all the parties. Konig says the hard work done to right size the footprint of the capital base has provided space to expand development activity in the logistics sector in Poland, which is offering attractive investment opportunities in an expanding market, which is expected to yield capital growth from further yield compression. “The European logistics platform is expected to grow significantly through exciting new opportunities on our doorstep, funded through our equity partnership with Madison.”Two recent completed developments in Poland of over 40,000 square metres add to an exciting further pipeline of seven projects of just over 189,000 square metres, which are 75% pre-let at an average income yield of 7.1%, and all funded via proceeds from the Madison transaction.Konig points out that Redefine has “done very well at working from home”, leveraging off its IT platform and instilling a culture of innovation and learning.“Our early commitment to refreshing our values, culture and focusing on our people has seen us make great strides in facing and overcoming this crisis together,” he says.“Our purpose remains to create and manage spaces in a way that changes lives and we have, for instance heightened our focus on ESG initiatives to further protect property values,” says Konig.Renewable energy remains a key strategic focus, with capacity expanded to 25.9 kw peaks during the period. “We will carry on ensuring the rollout of green energy and at the end of this financial year will have 100 office properties that are Green Star rated,” says Konig.“COVID 19 has intensified and sharpened pre-existing challenges. But we have done the hard yards and now stand in good stead as we prepare to enter into recovery,” he concludes. 

Redefine Properties appoints Diane Radley to board of directors
20 July 2020

Rosebank, South Africa, 20 July 2020: JSE-listed diversified Real Estate Investment Trust Redefine Properties (JSE: RDF) has appointed Diane Radley to its board of directors as an independent, non-executive director with effect from today. The appointment of Ms. Radley is in line with Redefine’s stated intention of strengthening governance and board independence, broadening diversity and bolstering skills on its board. A qualified Chartered Accountant (SA), Ms. Radley is an alumnus of Rhodes University and holds an MBA from the Wits Business School as well as an AMP from Harvard. Ms. Radley has international experience both in her executive capacity and as a non-executive director. Her extensive board experience includes her roles as chairperson of the Marriot Unit Trust Company (Pty) Ltd, non-executive director at Transaction Capital Ltd, Murray & Roberts Holdings Ltd and Base Resources Ltd in Australia. She was previously a non-executive director at Old Mutual Real Estate Holding Company Ltd. She led the Transaction Services Group at PwC which focused on due diligence and valuations on transactions for private equity funds, investment banks, strategic buyers, corporate acquirers and other equity providers prior to joining Altron as their CFO in 2001. In 2010 after a three-year term as group finance director of Old Mutual (Emerging Markets) she was appointed CEO of Old Mutual Investment Group until the end of 2016. In this role she was responsible for the property business and continued as a non-executive director on the board of Old Mutual Real Estate Holding Company after leaving Old Mutual. “We are delighted to welcome Diane to the board and look forward to working with her. Given her broad investment, real estate and board experience, she will be an invaluable resource as we continue to execute our strategy in a particularly challenging environment,” says Sipho Pityana, Chairperson, Redefine Properties.  Redefine’s gender diversity policy promotes a voluntary target of 40% female representation on the board over a three-year period, while the racial diversity policy promotes a voluntary target of 50% black representation on the board over the same period.  Ms. Radley’s appointment takes Redefine’s female representation on the board to 60%. “Diane’s appointment furthers our efforts to benefit from fresh and diverse perspectives from our independent directors,” concludes Sipho. 

Update on disposal of RDI REIT shares
07 July 2020

Shareholders are referred to the announcement released on SENS on 29 June 2020 wherein shareholders were advised that Redefine had:- announced a tender offer made to the holders of its outstanding €150,000,000 1.50 per cent Secured Exchangeable Bonds due September 2021 (the “Bonds”) exchangeable into the ordinary shares of RDI pursuant to which bondholders could elect to tender to have all or any of their Bonds redeemed by Redefine (the “Tender Offer”); and- concluded an agreement to dispose of up to 111 883 113 shares in RDI REIT P.L.C. (“RDI”) being its entire shareholding in RDI, representing 29.42% of the RDI shares in issue to controlled affiliates of Starwood Capital Group (the “Disposal”), conditional on the Tender Offer being accepted in respect of Bonds which, when added to the aggregate principal amount of Bonds previously exchanged, redeemed, purchased and cancelled by the Company was equal to 85% of the principal amount of Bonds originally issued (the “Offer Condition”).Redefine confirms that it received irrevocable tender offers for 100% of the outstanding Bonds and that all offers have been accepted. Redefine further confirms that the Offer Condition has been fulfilled and accordingly the Disposal of all of its 111 883 113 RDI shares for an aggregate sale consideration of £106 288 957.35 will be implemented on 10 July 2020.7 July 2020 

Redefine strengthens its balance sheet and simplifies its asset platform with R2.3 billion divestment of RDI
29 June 2020

Johannesburg, South Africa, 29 June 2020 – Redefine Properties (JSE: RDF) continues to advance its strategic priority of strengthening its balance sheet to offset the ongoing uncertainty and negative effects of the COVID-19 pandemic. In a move to drive the business forward in the face of challenging property fundamentals locally and internationally, today it concluded a deal that will see global private investment firm Starwood Capital Group acquire its 111.9 million shares in UK-based RDI REIT for 95 pence per share. The deal represents a 20.9% premium to the ruling share price. The disposal generates Redefine’s GBP106.3 million, which translates, at the current exchange rate, to R2.3 billion. Given that a portion (49.8 million RDI shares) of Redefine’s investment in RDI is encumbered by an exchangeable bond it issued in September 2016, Redefine today made a tender offer to the holders of the outstanding EUR150 000 000 1.50% Secured Exchangeable Bonds due September 2021 exchangeable into the ordinary shares of RDI, of which EUR117.2 million are presently outstanding. Undertakings from bondholders in support of the tender offer totalling 77.1% of the amount outstanding has been received. Redefine’s financial director, Leon Kok, says that the disposal of the RDI shares and the settlement of the bonds (assuming all bonds are redeemed) will reduce Redefine’s loan-to-value ratio by approximately 1.1%. Following the disposal, which is denominated in pound sterling, and the redemption of bonds pursuant to the tender offer, which is denominated in euro, Redefine will restructure its pound sterling debt portfolio. Redefine’s chief executive officer, Andrew König, says the exit out of RDI substantially advances Redefine’s stated intention of simplifying and solidifying its asset platform, as well as eliminating multiple entry points for South African equity investors into the same investment opportunities. Furthermore, it also improves the company’s risk profile through eliminating a risk universe over which it has no direct management influence. König says that Redefine’s strategic intent to strengthen its balance sheet, recycle non-core assets and boost liquidity continues to place the company in a strong position to withstand the risks and challenges of the current uncertain operating environment. The disposal will also allow Redefine to re-strategise and re-allocate its financial and capital resources to position the company for sustained value creation in a post-COVID-19 environment. “In the prevailing environment, the knowns are outweighed by evolving unknowns. Our intention is to ensure we can manage the variables under our control while being extremely well placed to benefit once conditions improve,” concludes König. 

Redefine announces sale of non-core assets in Australia for AUS459 million
26 June 2020

Johannesburg, South Africa, 26 June 2020 – Redefine Properties (JSE: RDF) announced today that its competitive bidding process to sell its interest in Journal’s two student properties in Australia has been concluded at AUS459 million. The disposal of its interests, comprising 1 391 beds is part of Redefine’s portfolio refinement and loan-to-value improvement strategy. During 2017, Redefine had acquired a 90% beneficial interest in Journal Student Accommodation Fund and during the following year Journal Swanston Sub Trust to develop the properties in Melbourne, Australia as purpose-built student accommodation and associated retail. Development of Leicester Street, an 804-bed facility, was completed in 2018 while the development of the 587-bed Swanston Street was completed in May 2020.Redefine’s financial director, Leon Kok, says a portion of the proceeds from the disposal will be used to settle the Australian loan facilities on the properties amounting to around AUS132 million and the remaining proceeds will be utilised to reduce Redefine’s other interest-bearing borrowings and enhance its liquidity. This transaction forms an integral part of Redefine’s loan-to-value improvement plan, which includes the disposal of approximately R8 billion of non-core assets across Redefine’s property asset platform, explains Kok.  The transaction will also secure the release of 60 million Cromwell Property Group shares from an encumbrance with Redefine’s intention that such Cromwell shares be sold on the open market to further advance Redefine’s stated intention to strengthen its balance sheet and bolster liquidity.Redefine’s chief executive officer, Andrew König, says: “The transformation of the property asset platform is necessary to withstand the impact of the pandemic whose trajectory is still evolving. Recycling out of non-core assets at the top end of their capital value will enable us to strengthen our balance sheet and crystallise the benefits of net proceeds.  We have consistently said our plan is to recycle capital into core markets where there is scope for scale, by disposing assets that no longer fit our long-term value creation strategy.”  

Redefine’s European logistics platform set to expand its footprint in Poland
17 June 2020

JSE-listed diversified Real Estate Investment Trust, Redefine Properties (JSE: RDF), along with equity partners Madison International Realty and Griffin Real Estate in European Logistics Investment BV  and in joint venture with its strategic development partner Panattoni Europe, will commence construction on a 50 000sqm build-to-suit (BTS) manufacturing and warehouse facility for Weber-Stephen Products in Zabrze within the Upper Silesian metropolitan area in Poland. Weber is a privately held US manufacturer of charcoal, gas and electric outdoor grills and related accessories. The building is planned with over 5 000sqm earmarked for office space. The site is provisioned for an additional 30 000sqm if Weber’s growth exceeds expectations. The project will be Weber’s first manufacturing facility in Europe and when complete will employ approximately 450 people. The construction will begin in August 2020 and will be ready for occupation during the second half of 2021. The BTS facility will serve as Weber’s primary distribution operation for Europe, Asia and Africa. Zabrze’s proximity to three international airports (Katowice, Krakow, Ostrava) and easy access to the A1 motorway (Gda?sk – ?ód? – Czechia – Austria), and the intersection of the A1 and A4 (Germany – Wroc?aw – Krakow) serve Weber’s interests well. The logistics real estate sector is proving to be more resilient than other real estate classes during COVID-19. According to Savills, the pandemic has had no significant impact on occupier demand in Poland in the first quarter of the year. The leasing volumes during Q1 2020 have been on par with the same period last year (1.1 million sqm) with a notable increase in demand for temporary space.Poland’s total warehouse and the industrial stock reached 19.0 million sqm at the end of March 2020, with the largest markets being Warsaw (4.4 million sqm), Upper Silesia (3.2 million sqm) and Central Poland (3.1 million sqm). According to Andrew König, CEO, Redefine Properties, the coronavirus pandemic is expected to intensify the demand for warehousing as supply chains are restructured and to meet the growth in online spending. The growth in e-commerce is benefitting logistics especially the development of “last mile” delivery facilities.  “Our strategy in Poland is centred around creating a leading logistics platform and Zabrze located in Upper Silesia, one of the most attractive logistics locations in the country was a natural choice for Weber”, says Pieter Prinsloo, CEO of Redefine Europe. The sustained investments in improving road infrastructure has enabled easy access to other parts of the country, as well as to the rest of Europe, making Upper Silesia a popular region among international companies looking for high-quality warehouses in good locations. The facility to be developed in Zabrze is our next investment in the region, following the development of the warehouses and logistic parks located in Ruda ?l?ska, Sosnowiec and Bielsko-Bia?a. ELI’s portfolio includes 16 assets with a total gross lettable area of circa 480 000sqm and approximately 120 000sqm under construction. In the next three to four years, ELI plans to expand by about 2 million sqm through development activity. 

Redefine achieves impressive tenant retention of 96% in the face of ongoing COVID-19 uncertainty
04 May 2020

Focus firmly on liquidity and balance sheet management and adapting portfolio to new behavioural patterns, as interim distributable income drops 32%Johannesburg – 4 May 2020 – With the COVID-19 virus and related uncertainty continuing to weigh on businesses, Redefine Properties (JSE: RDF) has announced a 32% fall in its distributable income per share for the six months ended 29 February 2020 to 33.46 cents from 49.19 cents in the prior comparable period. While this was mainly due to the need for prudence in recognising offshore dividend streams in the face of the lockdown and global volatility – the local portfolio held up well, with the tenant retention ratio at a pleasing and competitive 96%.CEO Andrew Konig says given the unprecedented and evolving market conditions, property fundamentals, domestically and globally, are going to be challenged for the rest of 2020 and beyond. A “tale of two halves” for the 2020 financial year can therefore be expected.“We are making decisions and adapting to new rules in an environment where the knowns are outweighed by evolving unknowns. So, while we cannot provide distribution guidance yet due to this evolving, fluid and dynamic situation, we also see this as a unique opportunity to change the way we do things to drive our business forward and to position ourselves to add stakeholder value,” says Konig.Redefine remains anchored by a diverse property asset platform valued at R89.2 billion and its local portfolio is complemented by property investments in Poland, the United Kingdom (UK) and Australia.The company continues to make inroads into realising value, with disposals during the period amounting to R707 million and with R1.9 billion deployed into property assets.In South Africa, the active portfolio vacancy rate increased marginally during the period to 6.0% from 5.7% in the same 2019 half year period. The operating cost margin increased to 36.0% of contractual rental income from 34.7% in the comparable half year period in 2019.Refurbishments completed during the period were for 155 West Street costing R168.5 million, as well as Kenilworth Centre, Knowledge Park and Sammy Marks at an aggregated cost of R87.0 million. Current redevelopments in progress amount to R29.1 million at Black River Park and The Towers.Financial director Leon Kok says the current environment demanded that Redefine adopt a “manage for liquidity and sustainability and not for profit” attitude. This means Redefine had to be extraordinarily prudent in terms of its approach to revenue recognition and how it manages its balance sheet.“Historically we relied on underlying dividend income streams which were forthcoming mainly from our international investments. However, due to the massive crosswinds, conventional thinking has had to be pushed aside,” explains Kok.During this period in particular, impairments on offshore holdings have played a key role in the financial result. This occurred in line with requisite international financial impairment testing standards due to ongoing global volatility and uncertainty. The carrying amount of EPP for instance – in which Redefine holds 45.4% – was impaired by R442.4 million. The carrying amount of RDI REIT plc, in which Redefine holds 29.4%, was similarly impaired by R121.5 million. In addition, the constrained local economic conditions and lack of catalysts for meaningful recovery, necessitated the impairment of goodwill and intangible assets totalling R5.6 billion. “The upshot of this is that our net asset value now only represents tangible assets and this impairment has no impact on the loan-to-value ratio,” says Kok.Kok says Redefine is satisfied that there is sufficient headroom to absorb unexpected headwinds and impacts on revenue.“We have sufficient liquidity to absorb pressure and continue to place the highest priority on managing our loan to value ratio – now at 44.2% from 43.9% in August last year. The prudent action we have taken will stand us in good stead as local conditions improve going forward.”The average cost of debt is 6.1% (FY19: 5.8%) and interest rates are hedged on 88.7% (FY19: 87.3%) of total borrowings for an average period of 3.0 years (FY19: 2.9 years).While Redefine can comfortably meet its solvency and liquidity obligations, it was resolved to defer the decision on the dividend declaration for the six months ended 29 February 2020 until the release of results for the year ended 31 August 2020, expected on November 2 2020.Konig says it is too early to call what the future holds from an outlook point of view, but Redefine intends to use this crisis as an opportunity to match future initiatives to expected changed consumer behaviour.“We will look at each of our properties to position them slightly differently to provide a relevant offering which differentiates us from the rest. How we work, play and live will change and we want to revisit our business model to ensure we adapt quickly and profitably,” explains Konig.There are some positive signs emerging as a phased period to exit the lockdown begins this month.“We are pleased with the progress in negotiations with tenants to secure rental income while alleviating pressure for those who are really battling. Generous discounts, for instance, have been given to struggling SMMEs. While the payment of rates and taxes remains a sticking point with large clothing retailers, the spirit of Ubuntu continues to shine through by all players in the property sector. We will get through this crisis if we all work together, adapt to changed circumstances and look forward,” concludes Konig.

Passing away of South African property doyen Marc Wainer is a loss to the entire sector
Passing away of South African property doyen Marc Wainer is a loss to the entire sector
20 April 2020

Johannesburg, South Africa, 20 April 2020: Marc Wainer, founder, former Chairman and CEO of Redefine Properties, who started his career working in his parents' grocery and fish shop in Yeoville and went on to build one of the country’s largest and diversified Real Estate Investment Trusts (REIT) listed on the JSE passed away earlier today at the age of 71. The legendary founder and pioneering property investor and developer Marc Wainer had retired from the company at the end of August 2019. Marc established himself as a visionary and an astute deal maker over his more than 40 years in the industry, building Redefine Properties, included in the JSE Top 40 Index, into one of the largest REITs with more than 300 local properties with last reported total assets exceeding R100 billion. He was also instrumental in transforming Redefine Properties into a global REIT with interests in commercial property diversifying into new markets such as Poland, United Kingdom, Germany and Australia and alternative investments such as student accommodation, as-well-as a once off residential play. “I am at a loss for words and deeply saddened by Marc’s passing away. He leaves a void in the lives of people in the entire property sector who did not escape his characteristic wit, infectious laughter and his genuine love and concern for those he worked with,” says Andrew Konig, CEO, Redefine Properties. “Marc was a true family man and our thoughts and prayers are with them during this difficult time.” “His passing away is also a huge loss to the sector and we will all miss his guidance and encouragement. Marc always said that people are the only thing that matter. Our tribute to him will be who we say we are and continue to grow the business he founded and continue to manage and create our spaces in a way that purposefully changes lives,” adds Konig. “Marc leaves an extremely powerful legacy. He will always be remembered as a legendary leader, a game-changer in the property sector, and someone who changed the lives of many who had the privilege of working with and knowing him, including those whose lives he touched via The Mentorship Challenge. He truly ‘walked the talk’ on his passion for people, property and giving back through mentorship.” Marc will be missed but never forgotten.  

BREAKING NEWS: Redefine postpones dividend as precautionary measure to provide financial flexibility and bolster liquidity in the face of ongoing COVID-19 uncertainty
23 March 2020

Decision follows Poland’s EPP announcing it will postpone payment of previously declared dividend.Redefine’s previous distribution guidance withdrawn; to be revised to provide greater market certaintyJohannesburg, 23 March 2020 – Given the unprecedented and evolving market conditions brought about by the ongoing COVID-19 uncertainty, we have decided to take a number of precautionary steps to safeguard our business in the best interests of all our stakeholders.While the safety of our tenants, visitors, shoppers and employees remains our paramount concern, the persistent and unprecedented COVID-19 uncertainty requires prudent decisions to be made which will provide us with enhanced flexibility and liquidity to remain on the front foot.We cannot forget that the uncertainty and prolonged nature of the lockdown is having negative repercussions all over the world, and South Africa is no exception. Polish listed EPP, in which we hold a stake, has already announced it is to postpone the payment of its previously declared dividend.While Redefine can comfortably meet its solvency and liquidity obligations and we are confidently pursuing our stated strategic priority to reduce balance sheet risk, the current circumstances dictate that we take the important precautionary measure to defer our decision on a dividend payment for the six months ended 29 February 2020. The board has decided to postpone this until the release of results for the year ending 31 August 2020, which is expected to be on or about 2 November 2020.We have also announced to the market that we are withdrawing our previous distribution guidance that distributable income per share for the 2020 financial year was expected to be between 5% to 7% lower than 2019. We will provide you with updates at such time as we are able to do so with a reasonable degree of certainty.Please be aware that we are in a closed period ahead of our upcoming results announcement for the half year to 29 February 2020 and therefore are not able to engage directly. However, any questions you may have can be channelled to our centralised investor relations email: investorenquiries@redefine.co.za so that the same information is provided to all investors.There is little doubt this is an extraordinary time of uncertainty and it necessitates that all businesses review their outlooks. We are not alone in this, but we are committed to transparency and providing our stakeholders with certainty. By acting prudently now to reduce balance sheet risk, bolster liquidity and create financial flexibility, we can get through this crisis together.Warm regardsAndrew KonigCEO 

Balance sheet management in a time of crisis
20 March 2020

Johannesburg, South Africa - 20 March 2020: The coronavirus (COVID-19) has triggered unprecedented financial market conditions, which emphasises the importance of prudent balance sheet management and demands careful liquidity planning.Redefine's last reported (as at FY 31 August 2019) currency analysis of its assets and debt position is set out below:    Property assets (R'billion) Debt (R'billion) LTV (%) Weighted average cost (%)           Net ZAR* 72.8 21.2 29.1 9.1 AUD 3.6 1.9 52.0 4.0 EUR 15.8 14.0 89.2 4.0 GBP 2.8 4.1# 145.5 3.0 USD 0.4 0.6# 141.0 4.5 Total 95.4 41.8 43.9 5.8  # Refinanced post 31 August 2019 to be in line with carrying values*Net of cash and cash deposits on CCIRSCross-currency interest rate swaps (CCIRS) are included at market value in the debt analysis above.Redefine's loan-to-value (LTV) ratio at 29 February 2020 is expected to be materially unchanged from the position at 31 August 2019.The summary above demonstrates the natural net asset value hedge created by Redefine matching its asset and debt currency exposures. The summary is not however reflective of assets backing secured debt facilities. The analysis below illustrates the last reported assets encumbered to support the various secured loans.    Assets (R'billion) Debt (R'billion) LTV (%) Local property assets 52.9 21.3 40.3 Offshore property assets UD 7.0 3.3 47.1 Listed investments 2.9 2.7 93.1 Encumbered assets / secured debt 62.8 27.3 43.5 Unencumbered assets / unsecured 32.6 14.5 44.5 Total 95.4 41.8 43.9  The following is noted: 66% of Redefine's property assets are encumbered, leaving unencumbered assets amounting to R32.6 billion to support unsecured debt of R14.5 billion; 78% of the secured debt is secured by local property assets, with a LTV ratio of 40.3% Offshore debt totalling R3 billion is secured against offshore property assets, which has no recourse to the South African balance sheet; and There is no capital margining required to top up or cure a shortfall in the market value versus secured debt in respect of listed investments (including in relation to Redefine's investment in RDI REIT PLC, EPP N.V and Cromwell Property Group).Redefine includes the market value of all its CCIRS in the debt balance to calculate its LTV in order to present a complete and prudent picture of its solvency and liquidity position. It must further be noted that none of Redefine's CCIRS have any credit support arrangements in place, which means that no cash margining or other collateral is required if the Rand depreciates.As at 31 August 2019, Redefine reported debt amounting to R6.3 billion maturing by 31 August 2020 (of which R1.6 billion was subsequent to 29 February 2020). Substantially all of this debt has been successfully refinanced and management is comfortable the balance will be addressed. We also have taken advantage of the lower interest rate curve to increase and extend our hedging maturity profile.Although we are operating in a fluid environment, Redefine remains well within all its debt covenants, the most stringent of which being a maximum Group LTV level of 50% and an interest cover ratio of 2 times. Redefine continues to execute on its previously announced strategic priority to reduce balance sheet risk. Working capital management has also been prioritised. Redefine has a strong liquidity position which includes significant cash and access to R2.8 billion in committed undrawn credit facilities.During this time the health, safety and wellbeing of all our stakeholders remains Redefine's managements' highest priority and a dedicated team has been established to ensure a co-ordinated response across the business. The team is tasked with developing and implementing the necessary responses and measures to address COVID-19. Management takes the threat seriously and is implementing practical measures to curb the spread of the virus for as long as the circumstances demand. A curtailment on discretionary costs has been implemented to make allowance for the anticipated costs associated with the various initiatives to combat the spread of COVID-19.At the time of release of this communication, normal domestic trading has not yet been materially impacted by disaster management regulations and business continuity plans have been implemented to minimise disruption by initiatives implemented to curb the spread of COVID-19.Despite the limitation of trade in Poland's shopping centres the movement of freight around, in and out of Poland continues as usual and the manufacturing sector is not shut down. In fact, there is additional demand for logistics space to support the current contingency measures. The Government of Poland has announced the provision of a $51.5 billion rescue package designed to shield the economy from the impact of COVID-19 which includes payments of portion of salaries for businesses affected by trading restrictions and a temporary suspension of the Sunday trading ban.Redefine is pleased to report that the introduction of an equity partner into its Polish logistics operations successfully closed on 10 March 2020. Management continues to make positive progress on the various initiatives to reduce the LTV ratio, whilst building capacity to absorb any negative LTV triggers arising from the current environment.Redefine's purpose-driven strategic approach remains highly appropriate for this environment and its diversified property asset platform is robust and well-positioned to withstand prevailing market conditions.#content ol li {list-style:unset !important;}

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