A weak rand has boosted income from foreign investments for South Africa's second-biggest property company.
Redefine Properties, South Africa’s second-biggest property company by market value, said first-half earnings advanced 8% as a weak rand boosted income from foreign investments.
Interim distribution, or earnings per share excluding non- cash adjustments, rose to 36.4 cents from 33.7 cents a year earlier, the Johannesburg-based company said in a statement on Thursday. Revenue increased 36% to R2.22-billion ($212.2-million).
“The rand hedges in our portfolio made a strong contribution to results, with our offshore assets comprising 14.7% of our total property base,” chief executive Marc Wainer said in an emailed statement on Thursday.
The gain comes amid a challenging domestic market and increases in utility costs, the company said. Redefine, which holds assets of R44.5-billion, has about R4-billion of acquisitions in progress and the company said it has increased its stake in Fountainhead Property Trust to 66%.
“We are on track to deliver similar growth in distributable income per linked unit for the second half of 2014,” Wainer said.
Redefine shares have gained 1.1% this year, giving the company a market value of R30.3-billion. That compares with a 0.1% increase for Growthpoint Properties, the country’s biggest real estate company. – Bloomberg