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ANNUAL RESULTS 2009

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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  1. ANNUAL RESULTS 2009

  2. THE MAKING OF

  3. 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%

  4. 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

  5. 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

  6. REDEFINE AT A GLANCE

  7. 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

  8. REVIEW OF 2009 RESULTS

  9. 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

  10. ABRIDGED INCOME STATEMENT

  11. DISTRIBUTIONS

  12. ABRIDGED BALANCE SHEET * Includes properties held for trading and excludes properties sold but not transferred

  13. TOP 20 PROPERTIES BY VALUE (1-10)

  14. TOP 20 PROPERTIES BY VALUE (11-20)

  15. 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

  16. TOP 20 TENANTS

  17. PROPERTY PORTFOLIO

  18. SECTORAL SPREAD

  19. GEOGRAPHICAL SPREAD Lettable area Gross monthly rental

  20. TENANT PROFILE BY LET AREA

  21. TENANT PROFILE BY MONTHLY RENTAL

  22. VACANCIES PER SECTOR

  23. LEASE EXPIRY PROFILE

  24. BORROWINGS • Weighted average cost of borrowings 9,33% • 87,7% of debt is fixed • Average length of fixes 6 years

  25. UNITHOLDER PROFILE

  26. REDEFINE CLOSING PRICES High: 741c Close: 729c Open: 665c Low: 531c

  27. REDEFINE VS PLS INDEX

  28. REDEFINE VS SAPY

  29. REDEFINE VS ALSI

  30. LIQUIDITY

  31. 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”

  32. 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)

  33. STRATEGY

  34. 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

  35. 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

  36. CHALLENGES • Global financial crisis • Corporate failures • Consumer spending contraction • Access to bank fundingand increased bank margins • Containment of soaring energy costs • Currency volatility

  37. 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.

  38. 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

  39. FORTHCOMING ATTRACTIONS

  40. 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

  41. REDEFINE INTERNATIONAL CIREF PLC

  42. REDEFINE INTERNATIONAL • Wichford PLC

  43. REDEFINE INTERNATIONAL WATCH THIS SPACE

  44. THE END

  45. OR IS IT JUST THE BEGINNING?

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