Redefine Properties has reported numbers for its financial year ended August 2025, notably a 4.2% increase in group revenue.

The diversified property group delivered a 7.8% increase in distributable income, lifted its operating profit margin by 1.1 percentage points to 76.2%, and reduced its loan-to-value (LTV) ratio to 40.6%, firmly within its target range.

Group revenue increased from R10.6 billion to R11.1 billion, while net property income grew by 4.1%, from R6.4 billion to R6.6 billion, during the year.

South Africa revenue increased by R299.8 million (3.6%), driven by acquisitions, new developments coming online, healthy in-force lease escalations, and improved letting activity, it said.

The increase was offset by negative renewal reversions in the office sector and the disposal of non-core properties, it said.

Distributable income increased 7.8% to R3.6 billion, while its board declared a final dividend of 25.4 cents per share for the six months ended August 2025.

Redefine Properties, which owns a diverse portfolio of assets in South Africa and Poland valued at more than R103.2 billion, includes flagship retail centres such as Centurion Mall, Blue Route Mall, Benmore Centre, Centurion Lifestyle Centre, Cradlestone Mall, and East Rand Mall.

The company currently has a market capitalisation of approximately R36 billion.

Chief executive officer Andrew König said: “Redefine ends the financial year in far better shape than we started it, with all key metrics trending positively.”

“The finalisation of South Africa’s greylisting exit is significant – it will translate into lower costs of capital, attract more foreign investment flows, and further deepen domestic liquidity. We’re already seeing the bond market pricing that in,” he added.

“Add to that the Reserve Bank’s firm inflation targeting stance and the possibility of a rating uplift next year, and you have the makings of a tangible, rising optimism.”

Retail renewal reversions moved into positive territory (1%), and trading densities improved, with tenants’ rental-to-turnover ratios at 7.4%, reflecting sustainable affordability. Industrial vacancies remain negligible at 2.7%, supported by buoyant logistics and warehousing demand.

“Industrial continues to perform exceptionally well,” said COO Leon Kok. “We’re seeing strong demand, particularly for logistics and warehousing space close to major transport corridors, where constrained supply is pushing rentals higher. Strategically, it’s a sector we’re keen to expand on, especially where we have developable land.”

On the retail front, Kok noted that tenant health remains solid and that the grocer anchors have supported the turnover growth. “We’ve seen marked improvement in their trading performance, which bodes well for the overall retail environment.”

In the office sector, occupancy is stable at 87%, and leasing volumes (at 262,000 m² signed) underscore renewed deal activity.

“Business confidence drives office demand, and the deal activity we’re seeing suggests sentiment is stabilising. Certain nodes, particularly in the Western Cape, have performed exceptionally well as provincial stability and governance continuity have translated into the lowest vacancy levels in the country,” Kok said.

Redefine’s Polish platform (EPP), whose retail platform accounts for roughly 28% of group assets, continued to deliver a strong, stable performance.

The group disposed of R1.1 billion of non-core assets during the period while reinvesting a similar amount in upgrades and energy-efficiency projects.

König noted that Redefine’s share price has delivered a 310% total shareholder return over five years, with its shares up over 21% year-to-date.

“Five years ago, our strategy was scattered across multiple geographies and asset classes. Today, we’re focused, disciplined, and in control of every asset we manage. That focus has changed how Redefine looks and feels, and it shows in our performance.”

From having assets spread across multiple continents, the company has strategically streamlined its portfolio to focus on two key geographies: South Africa and Poland.

He said that moderating inflation and improving liquidity all point to a more constructive operating environment. “If we maintain this trajectory, we’ll continue delivering inflation-beating capital and income growth for shareholders.”