Half year results presentation. April 2015

Transcription

1 April 2015

2 2 Introduction Who we are and what we do Redefine International is an income focused FTSE 250 UK-REIT The Group is focused on sustainable and growing income returns through investment in commercial real estate. The investment portfolio is geographically diversified across the UK, Europe and Australia with a focus on the retail, commercial and hotel property sectors. Redefine International holds a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange.

3 3 Well positioned against key objectives Our reputation and ability to provide sustainable and growing income returns to shareholders has been enhanced Distribution growth of CPI +1% - 2% achieved 4.6% growth in pro-forma Adjusted NAV, despite full earnings distribution Balance sheet position enhanced, pro-forma LTV reduced to 45.1% All this despite significant adverse FX movements (Euro, AUD$) Capital markets are supportive of our business model Market cap in excess of 850m, liquidity enhanced, strong shareholder support. The delivery of sustainable and growing long term income through innovative capital and asset management facilitated by capital recycling remains our core objective

4 4 Highlights Financial & corporate highlights Operational highlights Continued growth Property portfolio Earnings available for distribution increased 19.6% to 21.4m UK asset valuations increased by 2.1% Distributable EPS increased 5.2% to 1.63p European asset valuations increased by 0.4% in Euros Interim DPS of 1.60p (+6.7%) Occupancy maintained at 97.6% Balance sheet strengthened Asset management Placement of 131.4m new shares raising 71.0m post period end Agreement for lease signed with Primark at Ingolstadt Pro-forma Adjusted NAV per share 42.40p (+4.6%) Phased redevelopment of Weston Favell underway Pro-forma see through LTV reduced to 45.1% (Aug 2014: 48.1%) Further 5.0m extension planned at Birchwood Unrestricted cash balances of 72.5m available to invest Agreement with Travelodge to extend Enfield hotel by 21 rooms Corporate Capital recycling Transfer of listing category Acquisition of 156.8m German retail portfolio in JV Elisabeth Stheeman and Robert Orr appointed as NEDs Acquisition of 25.3m DoubleTree Hilton Hotel, Edinburgh Acquisition of three Delta assets for 15.7m exchanged Sale of Swiss COOP portfolio exchanged for CHF 36.0m Legacy assets and liabilities cleared Our emphasis on building strong management teams to extract maximum value from our asset base is paying off

5 5 Finance & operations

6 6 Distributable EPS (pence) Gross rental income Property operating expenses Cromwell distributions 0.28 Income from associates & JVs (1) 0.25 Other income (2) Professional fees Admin & other operating expenses 0.23 EPRA cost ratio of 16.5% (3) Noncontrolling interest 0.15 Net finance charges % of revenue Tax & FX loss % Distributable (4) EPS 1.63 Notes: (1) Includes income from Redefine BDL Hotel Group Limited of 0.26m (2) Includes management fee income from JVs (3) Excluding direct vacancy costs (4) Distributable EPS based on weighted average number of shares of 1,307,279,539

7 7 Adjusted NAV per share Adjusted NAV (Aug 2014) EPRA NAV (Aug 2014) Net impact of scrip issuance and LTIP (1) Distributable earnings Dividends paid Portfolio revaluation FCTR Other items (2) +4.6% EPRA NAV (Feb 2015) Other negative equity (3) 2.84 Adjusted NAV (Feb 2015) % Impact of placement post period end (4) Pro-forma Adjusted NAV % Notes: (1) Includes issuance of 23.8m shares at 48.97p in respect of scrip dividends (2) Other items includes Cromwell fair value gain on investment and debt ( 6.8m), gain on loan settlement of ( 3.6m), offset by IFRS fair value interest and debt issue costs ( 1.7m) and straight lining of rental income and share based payments ( 1.2m) (3) Includes Delta and Hague negative equity of 37.7m (4) Net capital raising proceeds of 70.0m and issuance of 131.4m shares (post period end)

8 8 Valuations Portfolio valuation m Market value (1) (28 Feb 2015) Surplus / (deficit) Movement Net initial yield UK Retail % 6.5% UK Commercial % 6.8% UK Hotels % 6.1% UK Total % 6.4% Europe (2) (20.9) (7.4%) 5.6% Like-for-like property portfolio (excl. non-core) (6.5) (0.7%) 6.2% +0.4% Non-core assets (3) 20.1 (1.8) (8.1%) 17.5% Like-for-like property portfolio (8.3) (0.9%) 6.4% (5.9%) Acquisitions 82.3 (1.5) (1.8%) +0.3% Total property portfolio 1,048.1 (9.8) (0.9%) 6.4% Cromwell (4) % - Total investment portfolio 1,149.9 (5.8) 0.4% - Notes: (1) Figures include share of joint ventures (2) Euro declined 8.5% against Sterling for the six month period to 28 February 2015 (3) The Delta and Hague portfolios (4) AUD declined 10.5% against Sterling for the six month period to 28 February 2015

9 9 Capital management Pro-forma see through leverage including share of JVs reduced to 45.1% (1) (August 2014: 48.1%) Weighted average debt maturity (2) of 9.4 years (August 2014: 9.3 years) Weighted average interest (2) rate of 4.4% (August 2014: 4.5%) Continue to extend debt maturity profile and reduce cost of borrowings Opportunities to benefit from current liquidity in debt capital markets Debt maturity profile ( m) Existing cost of debt GBP Euro AUD Non-core GBP: 3.1% Euro: 1.5% AUD: 7.3% GBP: 4.0% Euro: 2.5% Euro: 2.9% FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024+ Notes: (1) Excludes the Delta and Hague facilities and includes 70.0m of cash raised post period end (2) Excludes the Delta and Hague facilities

10 10 Capital allocation Assets ( m) Retail Commercial Hotels Total (1) UK % % % % Europe % % - 0% % Australia - 0% % - 0% % Total (1) % % % 1,129.8 Note: (1) Excludes non-core assets

11 11 Income visibility Expiries by gross income excl. Cromwell and non-core assets ( m) UK Commercial UK Retail Europe % of total 4.5% 6.8% % 5.7% % 4.1% 7.3% % % 6.1% FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

12 12 Property

13 13 Portfolio overview

14 14 German retail acquisition Overview Purchase of 56 properties for 156.8m in JV with Redefine Properties 1,379m sqft of retail space Net initial yield on cost of 7.5% ROE post refinancing in excess of 11.0% Income Strong tenant covenants 85% of rent roll from Western Germany and Berlin 100% income indexed to 65% - 75% German CPI WAULT of 10.3 years Asset opportunities Discussions underway to extend lease lengths and units Unsolicited approaches on a number of the properties at 15% - 20% above purchase price

15 15 Weston Favell, Northampton Food anchored convenience centre in a densely populated location 98.2% occupancy Development works underway to reconfigure and extend ground floor mall and improve aesthetics internally and externally 4.0m spend to pave the way for Phase 2 Design of Phase 2 underway to incorporate an additional anchor tenant in the upper mall Assisting local authority to bring forward neighbouring housing development and enhance leisure scheme

16 16 Crescent Centre, Bristol 88,000 sqft office located in the prime Temple Quay area Passing rent of psf vs prime rents of 28 psf Planning to be submitted for enhanced reception, café/meeting area and tenant amenity Works to redevelop and enhance entrance and tenant amenities budgeted at 2.0m Target rent of psf psf to deliver a return on new equity 10% Network Rail KPMG/Bristol City Council UK Government Deloitte/HSBC/Canada Life Crescent Centre NFU Mutual Regus 3i / Halcrow The Bank of Ireland RBS UK Government Temple Meads Station PwC ( 28 psf)

17 17 Birchwood, Warrington Food anchored discount centre within residential area with Birchwood business and technology parks nearby Occupancy 93.3% including vacant units to be demolished for scheme Creation of two to three new anchors plus restaurant units in response to demand Demand from occupiers means further phases likely Estimated yield on cost of c8.5% Discussions on the new discount unit reflects rent at c180% of the comparable neighbouring unit

18 18 St George s, Harrow Fashion and leisure anchored centre in London commuter suburb Occupancy of 98.0% Negotiations under way for new sports fashion anchor Discussion with adjoining owner to participate in retail/residential scheme Scheme being drawn up for fashion anchored extension following positive response from large floor plate occupiers

19 19 Ingolstadt Fashion scheme within affluent satellite town to Munich Mall to be redeveloped to create two prime high street units for H&M and Primark Average rental base 17.35/m²/month looks attractive as a future growth prospect Yield on cost 6.7% Existing Proposed

20 20 Bahnhof Altona Shopping Centre, Hamburg Convenience scheme integrally linked to the highspeed ICE rail network and S-Bahn (underground) rail networks Fully occupied with strong demand from retailers Excellent retail footfall between IKEA/TK Maxx and Mercado Centre Major redevelopment consisting of approximately 1.2m sqft of residential planned to the north Demand from large floor plate retailers significant opportunity to extend and redevelop the centre in phases

21 21 Capital projects summary Property Description/Progress Planning Start Capex (est.) Yield on cost (est.) Weston Favell Extension and reconfiguration of ground floor mall Rebranding and aesthetic enhancements Approved In progress 3.9m n/a (1) Crescent Centre Redevelopment on entrance Additional tenant amenities Pre-application stage Q m 10.0% Birchwood Demand-led extension Discount retailers and casual dining Pre-application stage Q m 8.5% St George s Potential extension to accommodate new anchor tenant Concept stage m 6.5% City Arcaden Complete redevelopment of existing centre Scheme to deliver new 5,000 sqm Primark store H&M to be retained and adjoin Primark Approved In progress 9.1m 6.7% Bahnhoff, Altona Potential major mixed use redevelopment Phased development process to match land release from railway First phase pre-let under negotiation Total Concept stage m m Note: (1) Forms part of larger scheme

22 22 Hotels Market and operating performance PwC forecasting London RevPAR growth of 5.1% Rugby World Cup to support demand in 2015 Underlying trading in Group s portfolio ahead of budget Asset management Terms agreed to extend Travelodge, Enfield by 21 rooms reflecting a yield on cost of 11.3% Planning at Southwark for a further 12 rooms approved Application to be submitted at Royal Docks for a further rooms Valuation underpinned by alternative use RedefineBDL Largest independent hotel management company in the UK Delivered 0.26m (25% share) to distributable earnings 22 Holiday Inn LRG portfolio under management since January 2015

23 23 Cromwell Shareholding Distributions net of withholding tax of AUD 5.7m ( 3.7m) Market value of shareholding increased 4.1% to 101.8m Distributions hedged for the remainder of the financial year Underlying performance HY2014 Operating profit of AUD 72.9m Forecast distribution growth for year ending June 2015 of 3.0% Gearing reduced to 36% Increase in external assets under management to AUD 1.5bn prior to Valad acquisition Acquisition of Valad Europe for 145m expected to increase FY2016 earnings by 5.0% Shareholding Shareholding decreased marginally to 9.95% (August 2014: 9.99%) Potential to reduce stake post August 2015 without incurring CGT Recycling of equity subject to alternative investment opportunities

24 24 Outlook

25 25 Outlook and strategy Looking forward Our focus on providing distribution growth of CPI +1 2% p.a remains Inward Rental growth appearing in key markets (discount & convenience retailing, limited service hotels in major cities, regional offices) Development and asset management initiatives will be key drivers External Capital markets (debt and equity) supportive of earnings and NAV accretive acquisitions Strong balance sheet, cash, liquid investments and supportive partners, give options for acquisitions Pipeline Capex program 20m - 80m (2 5 years) City brownfield mixed-use development Heads of Terms agreed Mixed-use UK portfolio Major German shopping centre Outlook Macro economic environment remains uncertain Quality of portfolio and earnings enhanced Balance sheet strengthened Strong pricing in some markets need to be nimble to deploy cash Well positioned for any outcome In an era of seemingly limitless supply of capital, we have to remain energised to stay ahead of the competition and we are confident that we are in a strong position to do so

26 26 Additional information

27 27 Portfolio metrics: portfolio analysis Combined portfolio (incl. share of jointly controlled entities) % of portfolio by market value Market value 28 February 2015 Properties Area (m 2 ) Annualised gross rental income Gross estimated market rental value Net initial yield Weighted average lease length UK Commercial Portfolio 13.8% 144,680, ,692 10,866,230 10,225, % % 1.4% UK Retail Portfolio 32.8% 344,290, ,133 27,666,360 29,036, % % 4.2% Hotels 21.1% 221,200, ,323 14,398,660 14,518, % % 1.5% Total UK 67.8% 710,170, ,149 52,931,250 53,780, % % 2.9% Europe 30.3% 317,881, ,481 21,628,603 20,953, % % 1.6% Total (excl. non-core assets) 98.1% 1,028,052, ,630 74,559,853 74,733, % % 2.4% Non-core portfolio 1.9% 20,084, ,228 3,772,418 2,484, % % 0.0% Total 100.0% 1,048,136, ,858 78,332,272 77,218, % % 2.3% Voids (by ERV) Voids (by lettable area)

28 28 Portfolio metrics: portfolio analysis continued Portfolio Analysis Consolidated (on balance sheet) portfolio % Ownership (effective) Market value 28 February 2015 Properties Area (m 2 ) Annualised gross rental income Gross estimated market rental value Net initial yield Weighted average lease length Voids (by ERV) Voids (by lettable area) UK Commercial Portfolio Office 100.0% 92,490, ,091 7,504,201 6,678, % % 2.7% Kwik Fit Portfolio 100.0% 16,857, ,870 1,057,411 1,047, % % 0.0% Petrol Filling Stations 100.0% 22,862, ,533 1,402,757 1,582, % % 0.0% Total UK Commercial Portfolio 132,209, ,494 9,964,369 9,308, % % 1.3% UK Retail Portfolio Grand Arcade, Wigan 100.0% 96,660, ,485 7,932,942 7,146, % % 1.0% West Orchards, Coventry 100.0% 30,100, ,673 3,494,091 4,277, % % 5.7% Birchwood, Warrington 100.0% 33,680, ,571 2,739,020 3,164, % % 6.7% St Georges, Harrow 100.0% 66,720, ,276 4,433,811 4,808, % % 2.0% Byron Place, Seaham 100.0% 20,670, ,719 1,541,596 1,569, % % 1.2% Crewe 100.0% 5,500, , , , % % 13.6% Weston Favell 100.0% 90,960, ,486 6,759,060 7,155, % % 1.8% Total UK Retail Portfolio 344,290, ,133 27,666,360 29,036, % % 4.2% UK Hotels Brentford Lock 71.1% 23,500, ,673 1,398,000 1,398, % % 0.0% Southwark 71.1% 37,700, ,936 2,182,000 2,182, % % 0.0% Limehouse 71.1% 29,300, ,747 1,884,000 1,884, % % 0.0% Royal Docks 71.1% 27,200, ,561 1,800,000 1,800, % % 0.0% Park Royal 71.1% 18,400, ,565 1,218,000 1,218, % % 0.0% Reading 71.1% 13,200, ,163 1,074,000 1,074, % % 0.0% Earls Court 71.1% 35,200, ,781 2,394,000 2,394, % % 0.0% Edinburgh 71.1% 25,300, ,250 1,837,500 1,837, % % 0.0% Enfield Travelodge 100.0% 11,400, , , , % % 13.7% Total UK Hotel Portfolio 221,200, ,323 14,398,660 14,518, % % 1.5% UK sub-total 697,699, ,950 52,029,389 52,862, % % 6.4%

29 29 Portfolio metrics: portfolio analysis continued Portfolio Analysis Consolidated (on balance sheet) portfolio (cont.) % Ownership (effective) Market value 28 February 2015 Properties Area (m 2 ) Annualised gross rental income Gross estimated market rental value Net initial yield Weighted average lease length Voids (by ERV) Voids (by lettable area) Europe Schloss Centre, Berlin 100.0% 65,255, ,140 3,849,676 3,755, % % 0.0% Bahnhoff Altona, Hamburg 100.0% 55,177, ,074 3,288,820 3,079, % % 0.8% City Arkaden, Ingolstadt 100.0% 14,211, , ,681 1,124, % 3.8 n/a n/a Premium 100.0% 24,347, ,101 1,781,424 1,804, % % 2.8% OBI portfolio 49.5% 15,893, ,388 1,229,427 1,229, % % 0.0% CEL Portfolio 99.0% 5,068, , , , % % 0.0% Bremen / Lindenhoff 80.1% 5,205, , , , % % 6.2% Swiss portfolio 100.0% 24,468, ,018 1,133,730 1,257, % % 0.0% Foodstores 100.0% 8,969, , , , % % 3.5% Total European Portfolio 218,597, ,400 13,489,162 13,848, % % 1.4% Wholly owned portfolio 916,296, ,351 65,518,551 66,711, % % 2.5%

30 30 Portfolio metrics: portfolio analysis continued Jointly controlled entities % Ownership Market value 28 February 2015 Properties Area (m 2 ) Annualised gross rental income Gross estimated market rental value Net initial yield Weighted average lease length Voids (by ERV) Voids (by lettable area) UK Commercial JVs Pearl House, Swansea 50.0% 1,420, , , % % 15.0% The Esplanade, Jersey 50.0% 23,522, ,514 1,644,041 1,630, % % 0.0% Total UK Commercial 24,942, ,397 1,803,722 1,835, % % 2.1% Europe Supermarket portfolio 50.0% 114,096, ,191 9,132,479 9,096, % % 2.5% Waldkraiburg 50.0% 7,794, , , , % % 0.0% Kaiserlautern 50.0% 4,843, , , , % % 0.0% Hucklehoven 50.0% 8,555, , , , % % 0.0% Retail sub-total 135,289, ,691 10,622,871 10,587, % % 2.2% VBG portfolio 49.0% 64,581, ,368 5,772,206 3,695, % % 0.8% Total Europe 199,871, ,059 16,395,078 14,282, % % 1.8% Total 224,813, ,456 18,198,800 16,118, % % 1.9%

31 31 Distributable EPS Distributable earnings reconciliation (,000) IFRS EPRA Adj. EPRA Delta Company Adj. Distributable earnings Income Statement Gross rental income 35,027 35,027 (1,502) 752 (1) 34,277 Investment income 3,683 3,683 (2) 3,683 Other income 1,696 1, (400) (3) 1,975 Total revenue 40,406 40,406 (823) ,935 Administrative and other operating expenses (3,421) (3,421) (4) (2,981) Investment adviser and professional fees (2,082) (2,082) (5) (1,302) Property operating expenses (2,598) (2,598) 45 (2,553) Net operating income 32,305 32,305 (675) 1,469 33,099 Net (losses)/gains from financial assets and liabilities 6,981 (3,427) 3,554 (3,554) Impairment of loans to joint ventures (1,218) (1,218) 1,218 Gain on sale of JV 779 (779) Equity accounted profit 4,221 (2,133) 2,088 1,150 3,238 Net fair value gains / (losses) on investment property and assets held for sale 8,600 (8,600) Write dow n and amortisation of intangible assets (116) 116 Profit from operations 51,552 (14,823) 36,729 (675) ,337 Interest income (4) 527 Interest expense (14,939) (14,939) 307 1,664 (6) (12,968) Foreign exchange gain / (loss) 1,354 1,354 (1,354) (7) Profit before taxation 38,498 (14,823) 23,675 (372) ,896 Taxation (1,685) 1,155 (530) (530) Profit after taxation 36,813 (13,668) 23,145 (372) ,366 (Loss)/profit attributable to: Equity holders of the parent 35,249 (13,626) 21,623 (372) ,368 Non-controlling interest 1,564 (42) 1, ,998 Notes: (1) Straight lining of rental income (2) Cromwell distributions (gross of withholding tax) (3) Non-cash earnings (The Hague) (4) Includes provision for LTIP (5) Includes capital disposal costs (6) Fair valuation of debt (non-cash interest) and amortisation of debt issue costs (7) Unrealised FX impact on AUD debt

32 32 JV & associates (proportionately consolidated) JVs & Associates ( '000) Year ended 28 February 2015 Joint Venture Partners VBG portfolio Menora Mivtachim Retail park JV Menora Mivtachim Premium NEPI The Esplanade (Jersey) Rimstone Ltd Churchill Court Graymont Ltd Pearl House Sw ansea Sandgate Properties Ltd Zenprop Redefine Properties Limited Total Joint Ventures Associate - RBDL Tsogo Sun, PE & RBDL mgmnt Total JVs and Associates Business segment Europe Europe Europe UK Commercial UK Commercial UK Commercial Europe Hotels Group percentage ow ned 49% 50.5% 50%/95% 50% 25% 50% 50% 25.28% Income Statement Gross rental income 3, , ,918 11,750 11,750 Other income ,139 1,272 Gross revenue 3, , ,010 11,883 1,139 13,022 Investment advisers fees - (20) (20) - (20) Professional fees (77) (79) (34) - (159) (16) - (365) - (365) Administrative expenses (31) (12) (15) - (31) (3) (155) (246) - (246) Property operating expenses (46) (71) (235) (10) (15) (7) (558) (941) - (941) Net operating income 2, , ,297 10,310 1,139 11,449 Net interest expense (642) (208) (688) (525) (123) (13) (1,724) (3,924) - (3,924) PBT 2, ,573 6,387 1,139 7,526 Tax (2) (18) (20) - (20) PAT (distributable) 2, ,555 6,367 1,139 7,506 Non controlling interests (1,166) (274) (265) (94) (40) (27) (1,277) (3,143) (851) (3,994) Distributable earnings (attrib) 1, ,277 3, ,512 Reconciliation to IFRS PAT PAT (distributable) 2, ,901 1,139 5,040 Investment property revaluation - 1, ,997-1,997 Derivative revaluation - (64) (64) - (64) Other items (146) (976) (695) (110) (805) IFRS PAT 2,287 2, (120) 5,139 1,029 6,168 Unadjusted IFRS PAT (attrib) 1,121 1, (60) 2, ,671 Shareholder interest received* 1, ,550-1,550 IFRS PAT (attrib) 2,671 1, (60) 3, ,221

33 33 Debt facilities Group Debt Analysis (on balance sheet) % Ow nership (effective) Principal 28 February 2015 Applicable interest rate (%) Non core debt % Ow nership (effective) Principal 28 February 2015 Applicable interest rate (%) UK Stable Income Portfolio Office 100.0% 35,937, % Kw ik Fit Portfolio 100.0% 10,473, % Petrol Filling Stations 100.0% 10,766, % Total UK Stable Income Portfolio 57,177, % UK Retail Portfolio Birchw ood, Warrington 100.0% 28,865, % St Georges, Harrow 100.0% 38,812, % Byron Place, Seaham 100.0% 16,617, % Grand Arcade, Wigan 100.0% 73,000, % West Orchards, Coventry 100.0% 18,067, % Weston Favell 100.0% 50,000, % Total UK Retail Portfolio 225,363, % Hotels Holiday Inn Portfolio 71.0% 110,534, % Enfield Travelodge 100.0% 4,156, % Total Hotel Portfolio 114,691, % Europe Bahnhoff Altona, Hamburg 100.0% 38,979, % City Arkaden, Ingolstadt 100.0% 9,129, % Schloss Centre, Berlin 100.0% 50,033, % CEL Portfolio % 2,881, % Bremen / Lindenhoff 80.2% 2,537, % Sw iss portfolio 100.0% 10,942, % OBI portfolio 49.5% 11,079, % Premium portfolio 93.9% 13,776, % Total European Portfolio 139,359, % Delta 100.0% 38,383, % The Hague 100.0% 14,727, % Total non core debt 100.0% 53,110, % Total debt 614,988, % JVs and subsidiaries proportionate share Principal (share) 31 August 2013 Weighted average interest rate (%) UK Stable Income Portfolio 10,754, % Europe 62,905, % Total share 73,659, % Total portfolio 688,648, % Cromw ell 100.0% 25,284, % Total core debt 561,877, %

34 34 Consumer and brand engagement

35 35 Major shopping centres (UK) St George s Shopping Centre, Harrow Valued at 66.7m 219,000 sqft (20,300 m 2 ) Vue Cinemas, Fitness First, H&M, Boots, T.K. Maxx, Prezzo, Pizza Express, Nandos Leisure focused retail scheme Grand Arcade Shopping Centre, Wigan Valued at 96.7m 469,000 sqft (43,500 m 2 ) Debenhams, M&S, BHS, Monsoon, Next, T.K.Maxx Dominant city centre scheme West Orchards Shopping Centre, Coventry Valued at 30.1m 212,000 sqft (19,700 m 2 ) Debenhams, M&S, Body Shop, WH Smith, KFC Dominant city centre scheme

36 36 Major shopping centres (UK) Birchwood Shopping Centre, Warrington Valued at 33.7m 394,000 sqft (36,500 m 2 ) ASDA, Aldi, Argos, Home Bargains, New Look, QVC Discount and convenience retail centre Byron Place Shopping Centre, Seaham Valued at 20.7m 115,000 sqft (10,700m 2 ) ASDA, Argos, Farmfoods, Peacocks, Wilkinsons Discount and convenience retail centre Weston Favell Shopping Centre, Northampton Valued at 91.0m 307,000 sqft (28,500 m 2 ) Tesco, Wilkinsons, Boots, New Look Edge of Town

37 37 Major shopping centres (Germany) Schloss Strassen Shopping Centre, Berlin Valued at 90.0m 18,100 m 2 Primark, ToysRUs, Fitness First Bahnhof Altona Shopping Centre, Hamburg Valued at 76.1m 15,100 m 2 Media Markt, Rossmann, BHG, Lidl City Arkaden Shopping Mall, Ingolstadt Valued at 19.6m 10,400 m 2 Primark (agreement for lease), H&M

38 38 Hotel assets Holiday Inn Brentford Lock Valued at 23.5m 134 bedrooms 12,743 sqft meeting room area Holiday Inn Express Earls Court Valued at 35.2m 150 bedrooms 226 sqft meeting room area Holiday Inn Express Limehouse Valued at 29.3m 150 bedrooms 160 sqft meeting room area

39 39 Hotel assets Holiday Inn Express Southwark Valued at 37.7m 136 bedrooms Holiday Inn Express Park Royal Valued at 18.4m 108 bedrooms 1,400 sqft meeting room area Holiday Inn Express Royal Docks Valued at 27.2 million 136 bedrooms and 190 sqft meeting room area

40 40 Hotel assets Crowne Plaza, Reading Valued at 13.2m 122 bedrooms 400 sqft meeting room area Doubletree by Hilton Edinburgh City Centre, Scotland Acquired for 25.3m 138 bedrooms Brasserie restaurant and bar 5 meeting rooms & penthouse suite/function room 4,729 sqft pub area Enfield Travelodge Valued at 11.4m 132 bedrooms 6,829 sqft retail area (being marketed)

41 41 Company overview Redefine International is an income focused diversified UK Real Estate Investment Trust. The Group is focused on sustainable and growing income returns through investment in commercial real estate and real estate securities. The investment portfolio is geographically diversified across the UK, Europe and Australia with a focus on the retail, commercial and hotel property sectors. Redefine International holds a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange. Redefine International at a glance Market cap of c 860m Distributable earnings of 39.1m (3.28 pence per share) (FY2014) Dividend per share of 3.20 pence (FY2014) LTV of 45.1% Included within the EPRA and FTSE 250 indices Shareholders on LSE Share Register Shareholders on JSE Share Register 30.0% 35.5% 34.5% Investment portfolio c 1.03bn property portfolio across the UK and Germany Number of assets: 168 Weighted average cap rate: 6.2% Weighted average lease length: 9.0 years LSE : RDI JSE : RPL 9.95% shareholding in Cromwell Property Group (Australia) Note: Investment portfolio data reflects core property portfolio at 28 February 2015

42 42 Contacts Mike Watters CEO t: +44 (0) e: Stephen Oakenfull Deputy CEO t: +44 (0) e: Adrian Horsburgh Property Director t: +44 (0) e: Top Floor, 14 Athol Street Douglas Isle of Man IM1 1JA t: +44(0) nd Floor, 30 Charles II Street London SW1Y 4AE t: +44 (0) Redefine International