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Archives for August 2025

Spear REIT Provides HY2026 Pre-Close Update

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Spear REIT Provides HY2026 Pre-Close Update: Strong Operational Delivery, Portfolio Growth and Balance Sheet Resilience

 Spear REIT has issued its pre-close update for the half year ending 31 August 2025 (“HY2026”), highlighting steady performance across its portfolio, continued growth through acquisitions and further investment into sustainability initiatives. The company stated that despite a challenging operating environment, results remain firmly on track with guidance currently tracking slightly higher than the midpoint of its market guidance for FY2026, supported by consistent operational execution and disciplined financial management.

Highlights

  • Distributable Income Per Share (DIPS) Tracker: DIPS tracking at 36.77 cents year to July, with distribution per share (DPS) to shareholders at 34.93 cents per share (95% payout ratio).
  • Operations: rent reversions across the combined portfolio were just under flat as tenant retention and rental preservation are prioritised; escalation rates nudged higher to 7.31% (from 7.27%); portfolio occupancy stable at 95% and expected to improve to 96–97% by period-end; cash collections remain strong at 98.45%.
  • Acquisitions: R1.08 billion invested into prime Western Cape properties (137,090m²) at an initial yield of 9.54%, adding quality scale to the portfolio.
  • Balance sheet: loan-to-value ratio at 14.26% pre-acquisition; interest cover ratio at 3.84x; liquidity of R400 million after commitments, maintaining ample flexibility.
  • Sustainability: solar coverage to grow to 67% of the portfolio, with 11 more systems under construction and recent acquisitions expected to lift this to around 70%.
  • Current portfolio profile: asset base of R5.58 billion, 487,317m² of gross lettable area, and 39 high-quality Western Cape assets.

Sector performance for the year to July 2025 underlines the portfolio’s resilience. Retail centres delivered 91.7% occupancy and like-for-like income growth of 12.2%, with strong rental uplifts of 13.7% driven by demand in convenience and destination formats, while larger apparel retailers increased their presence. The Commercial portfolio recorded 92.2% occupancy, with solid income growth of 7.0% despite negative rental reversions, cushioned by over 16,000m² of space successfully renewed and re-let.

 Industrial assets continued to show strength with 96.6% occupancy and positive rental reversions, even as income was temporarily impacted by a sustainability-linked vacancy at Mega Park. Expansion plans in Blackheath and George are progressing toward final approvals.

Key milestones during the period included a R749 million equity raise in June 2025 to support Spear’s asset growth plans and PV solar rollout strategy. During the period, management has successfully reduced borrowing costs and driven strong leasing momentum, which has improved the weighted average lease expiry and escalation metrics of the core portfolio. The pending integration of three new acquisitions — Berg River Business Park in Paarl, Consani Industrial Park in Elsies River, and Maynard Mall in Wynberg — is set to add 137,000m² to the portfolio and lift asset valuations to approximately R6.65 billion.

During the pre-close presentation, CEO Quintin Rossi commented:
“The first half of FY2026 reflects our team’s consistent execution in driving rental cashflows, managing risk, and growing our Western Cape-focused portfolio. While trading conditions remain tough, our strong balance sheet, recent acquisitions, and ongoing solar rollout position us to capture further growth and deliver sustainable returns to our shareholders.”

Spear also anticipates its inclusion in the JSE All-Property Index in March 2026, subject to confirmation, which would broaden its investor universe within the listed property sector and result in improved liquidity and greater market visibility.

Looking ahead, Spear reaffirmed its guidance for the full year, with distributable income per share expected to grow between 4% and 6% compared to FY2025, underpinned by disciplined asset management, selective acquisitions and a resilient Western Cape-focused portfolio.

 

Redefine lifts earnings guidance

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Redefine lifts earnings guidance as operational momentum drives growth

Redefine Properties (JSE: RDF) announced in its pre-close update for the year ending 31 August 2025 that it has upgraded its distributable income per share (DIPS) guidance to between 51.5 and 52.5 cents for FY25. This upgrade is underpinned by improved operating margins, enhanced efficiencies, stronger occupancy levels, and disciplined capital management.

This marks a significant step forward for the Group, which has successfully navigated a volatile macroeconomic backdrop while emerging in a stronger position than at the start of the financial year.

Resilient through volatility

“Over the past year, each time we thought the skies were clearing, a new dark cloud appeared. But those clouds have dissipated and today Redefine is in better shape than at the start of the year,” said CEO Andrew König. “Despite volatility, our diversified platform has absorbed shocks with minimal disruption, underscoring the strength of our business.”

Macro tailwinds are now reinforcing the growth story. Load shedding has largely receded, supported by a surge in renewable energy projects and reforms under Operation Vulindlela. Improvements in logistics, from ports to rail, are easing bottlenecks in the movement of goods and underpinning broader economic activity.

Commercial real estate transactions are also recovering, with Redefine already completing R1.1 billion of local asset sales in 2025 compared to R386 million last year.

“We are encouraged by South Africa’s expected removal from the FATF greylist in October, and we remain hopeful for an S&P sovereign credit rating upgrade in 2026, while interest rates have settled at long-term averages, providing stability after a period of steep hikes,” König noted.

Operational performance drives earnings

CFO Ntobeko Nyawo highlighted that Redefine is on track to deliver a net operating profit margin of 77% by year-end, up from 75% in 2024. Recurring income now makes up 99.8% of total earnings, giving investors clearer visibility into future performance.

“The upgraded DIPS guidance reflects not only improved leasing and occupancy levels, but also the impact of cost efficiencies, lower funding costs, and proactive debt management,” said Nyawo. The group’s liquidity position remains robust with R7.6 billion in cash and undrawn facilities and a weighted average cost of debt reduced to 6.6% while its loan-to-value (LTV) ratio is improving to within the 38-41% target range.

Retail and industrial lead the charge in SA

COO Leon Kok emphasised that the local portfolio continues to deliver stable growth. Retail tenant turnover increased nearly 5%, supported by similar trading density growth, strengthening tenants’ ability to absorb rental escalations. Renewal reversions and occupancy levels continue to improve.

The industrial portfolio remains robust, with sustained demand for modern logistics facilities and strategic land holdings in Johannesburg South and the Western Cape positioning Redefine for further expansion.

The office sector, while still challenging, shows signs of recovery. Renewal activity has stabilised, particularly in P-grade buildings, giving confidence that positive income growth is on the horizon.

He also emphasised the Group’s sustainability achievements, noting that Redefine has increased its renewable energy capacity by 9.3MW to 52.5MW during the period, with a further 13MW of projects underway. This investment will add another 20% to the group’s renewable energy footprint.

“Sustainability is not a nice-to-have, it is a core operational imperative. By expanding our renewable energy portfolio and reducing reliance on municipal utilities, we are both enhancing tenant appeal and protecting margins against double-digit increases in administered costs,” Kok said.

Poland: strength in high-demand cities

Redefine’s Polish retail portfolio continues to perform strongly, reflecting the overall quality and positioning of its properties within key urban centres. “This just speaks to the strength of the properties within each of the cities where they are located,” König said. “Our Polish portfolio is robust because it is concentrated in cities with the strongest consumer growth and spending power.”

Occupancy remains high at 97.9%, with rent collection at 99%. While footfall was slightly down, like-for-like turnover increased 2%, reflecting stronger consumer spend per visit. Operational efficiencies, including rationalised property management and internalised accounting, have lifted margins.

The logistics platform (ELI) has also performed well since its split from Madison International Realty. Redefine’s portfolio has reduced vacancy from 6% to 3%, delivered 6.3% rental growth on renewals, and maintains a robust weighted average lease term of 5.1 years.

König noted: “This has been a significant focus for us because simplifying our offshore joint ventures is key to reducing our see-through loan-to-value ratio. Along with organic growth, these improvements are central to re-rating Redefine’s share price.”

Self-storage expansion continues, with a new development in Kraków and two more underway in Warsaw and Gdańsk, which will add nearly 28 000sqm of institutional-grade capacity and position Redefine to attract future equity partners into the platform.

Turning upside into results

König emphasised that Redefine is entering FY26 with strong momentum and a sharper growth focus. “What began as an internal call to embrace positivity and mindful optimism through our Upside Connect sessions is now being broadened: it’s not just our upside, but everyone’s upside that should be the rallying point – the Upside of Us.

Momentum is translating into tangible results. In real estate, progress can be slow, but once it builds, the benefits snowball – and that’s what we’re starting to see. With operational momentum, financial discipline, and supportive macro conditions, Redefine is well placed to continue delivering sustainable growth into the medium term,” he concluded.

Vukile concludes oversubscribed R500 million bond issuance

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Vukile concludes oversubscribed R500 million bond issuance at record-low pricing

 Vukile Property Fund (JSE: VKE) has successfully concluded the issuance of R500 million in senior unsecured corporate bonds across three- and seven-year maturities, achieving market-leading pricing. The offering was met with overwhelming demand, attracting more than R3 billion in bids — over six times the target issue size.

The three-year tranche of R214 million priced at 102 basis points (bps) and the seven-year tranche of R286 million priced at 135bps — both tighter than initial price guidance. The weighted average margin of 121bps represents a substantial improvement over existing debt maturing in Vukile’s 2026 financial year, which will be re-paid, lowering Vukile’s cost of capital.

Laurence Rapp, Chief Executive Officer of Vukile, comments, “We are pleased with the strong demand and favourable pricing received. The substantial support for the auction demonstrates the market’s endorsement of Vukile’s disciplined approach to capital allocation, our high-quality assets and our long-term investment strategy.”

 Absa Bank Limited, through its Corporate and Investment Banking division, acted as sole lead arranger.

Marcus Veller, Principal, Debt Capital Markets of Absa notes, “The keen investor interest, with over 21 institutions participating in the auction, demonstrates Vukile’s strong position as a meaningful and regular DCM issuer. Vukile’s track record of financial performance and a supportive market culminated in an excellent auction and issuance outcome.”

Maurice Shapiro, Group Head of Treasury at Vukile, adds, “The record low pricing of this bond issuance marks a significant milestone in our debt capital markets strategy. The favourable outcome reduces Vukile average cost of debt and extends our maturity profile, reinforcing balance sheet strength and flexibility.”

In July 2025, GCR Ratings upgraded Vukile’s national scale long-term issuer credit rating to AA+(ZA) from AA(ZA) and affirmed its short-term rating at A1+(ZA), with a stable outlook. GCR highlighted that “Vukile’s property performance remains a key rating strength,” citing its resilient portfolio as a consistent outperformer in the broader property sector.

Vukile is a specialist retail REIT with a high-quality, blue-chip-tenanted portfolio valued at approximately R50 billion, operating across South Africa, as well as Spain and Portugal through its 99.6% owned Spanish subsidiary, Castellana Properties. Vukile’s consumer-centric focus on defensive, everyday retail in both South Africa and Iberia has proven resilient and strategically accretive, driving value creation for stakeholders.

 

 

Hyprop Foundation Launches Charity

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 Hyprop Foundation Launches Charity Drive Honouring Nicole Greenstone’s Life, Supporting Animal Welfare

Initiative Aims to Celebrate Nicole’s Legacy through Community Action and Compassion for Animals.

The Hyprop Foundation’s Warm Woodrock charity drive is currently underway, calling on the public to support animal welfare in loving memory of Nicole Greenstone. Nicole, a cherished colleague and friend, passed away in August 2024. She is remembered not only for her professionalism and warmth but for her profound compassion for animals, which has shaped her life.

This initiative, established by the Hyprop Foundation, was created to keep Nicole’s legacy alive by supporting animal shelters that reflect her values. With this in mind the foundation’s Warm Woodrock project will support Woodrock Animal Rescue, a Gauteng-based shelter known for its hands-on approach to animal care, rehabilitation, and rehoming.

Running until the end of August, the drive invites the public to donate blankets, pet food and essential supplies for dogs, and cats. Branded collection bins are located at five Hyprop shopping centres: Hyde Park Corner, Clearwater Mall, Woodlands Shopping Centre, The Glen Shopping Centre, and Rosebank Mall.

“Our goal is simple,” says Leonie Prinsloo from the Hyprop Foundation. “We honour Nicole by championing a cause she held close to her heart, giving vulnerable animals a second chance at life. Nicole’s compassion was a beacon of hope for both people and pets. By participating in this initiative, you can turn her legacy of kindness into real, life-saving action.”

Each centre is also hosting a live caricature artist on select weekends. Visitors who drop off donations receive a free, personalised sketch of themselves and their pet, a small thank you for helping make a difference. Upcoming caricature artist appearances include 16 August at Clearwater Mall and 23 August at The Glen Shopping Centre.

“Nicole poured her heart into helping those who needed it most, especially animals with no voice of their own, adds Prinsloo. “By supporting Warm Woodrock, you honour Nicole’s legacy and give hope and a future to animals in desperate need. Help us give animals the love and care Nicole gave so freely. Your support truly makes a difference.”

Woodrock Animal Rescue, established in 1992, is one of South Africa’s oldest independent pro-life animal shelters. It is home to hundreds of rescued animals and relies entirely on public support to operate. The partnership with the Hyprop Foundation brings much-needed supplies, awareness, and funding to its mission.

Donation guidelines and a QR code linking directly to Woodrock’s website are available at each collection point, offering digital options for those unable to donate items in person.

The Hyprop Foundation, Hyprop Investments’ Corporate Social Investment arm, is committed to making a meaningful impact in the communities surrounding its shopping centres. The Hyprop Foundation focuses on education and skills development, community upliftment, and enterprise development, and strongly believes in building a better future by investing in people, places, and the planet. Warm Woodrock is a testament to the Hyprop Foundation’s commitment to making a real difference. Partnering with Woodrock Animal Rescue brings its value of compassion and community to life.

Join us in honouring Nicole’s legacy and making a real difference for animals in need. Visit any participating Hyprop retail centre or scan the QR code at donation bins to find out how you can support Warm Woodrock.

Growthpoint x Fuel Switch

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Growthpoint x Fuel Switch: a new benchmark in the global green economy that opens REC markets for SA Inc

 Growthpoint Properties (JSE: GRT) is giving a massive boost to Africa’s first open blockchain-enabled Renewable Energy Certificate (REC) exchange, Fuel Switch, while unlocking certified clean energy trading for tenants when its e-co2 green energy initiative goes live on October 2025.

Wheeled green energy is available for daily business in South Africa from October

Growthpoint’s e-co₂ will deliver its first green electrons to 10 Sandton office buildings in October, with hydropower wheeled over the national grid from the Boston Hydroelectric Plant, newly developed in the Lesotho Highlands Water Scheme in partnership with Serengeti Energy. The e-co2 roll-out puts Growthpoint well ahead in bringing certified renewable energy into daily business use. e-co2 wheeled green electricity is cost competitive for Growthpoint tenants and has a zero-carbon footprint, so they can save money and advance their sustainability goals.

Growthpoint has a long-standing track record in sustainable property innovation. For e-co2, the company signed a 195GWh Power Purchase Agreement with Etana Energy in 2023, securing a mix of hydro, wind and solar power. This energy underpins Growthpoint’s pioneering e-co₂ solution, which delivers wheeled renewable electricity directly to commercial buildings and their tenants.

But the real breakthrough lies in how this energy is certified, tracked and monetised for Growthpoint’s tenants. To deliver this capability as part of a growing suite of high-impact business-enabling tenant benefits, Growthpoint partnered with Fuel Switch, a blockchain-based energy tech platform and recent winner of the Agence Française de Développement’s Digital Energy Challenge.

Partnering for innovative green energy certification

Fuel Switch’s platform certifies the electricity as green using IoT, blockchain and AI, providing independent third-party verification in an innovative manner. Once certified, the green energy benefit is recorded on a digital certificate.

Each REC confirms that one megawatt-hour of renewable energy has been generated and supplied to the national grid. The RECs are stored on the blockchain as a digital asset. Each is time-stamped and linked to a renewable energy source.

Think of it like this: when a solar panel generates electricity, it creates two things – actual power, and a certificate that says, “this power came from a clean, renewable source”.

Certified green energy: a valuable new currency for business

 Corporates have come under increasing pressure to meet net-zero and ESG commitments. On top of this, sustainability reporting is increasingly carrying the same weight and scrutiny as financial reporting.

RECs can be redeemed for certified reduction of Scope 2 Carbon emissions. Fuel Switch integrates directly with South Africa’s national REC registry, zaRECs, as well as the global I-REC standard governed by the I-TRACK Foundation. Its blockchain platform provides an immutable record for each REC from issuance to retirement, which ensures auditability aligned with global ESG standards.

What’s more, with South Africa’s constrained economic growth, businesses are under immense pressure to grow and find new revenue streams. RECs can be monetised by selling them on the voluntary REC market where rights to green electricity are sought after.

Large companies — Google, Amazon, Microsoft, Apple, and Meta — are a driving a surging demand for RECS as they seek to reach 100% renewable electricity for their operations.

Until now, Africa’s participation in the voluntary RECs market has been limited. High costs, slow manual processes and opaque trading made it accessible to only the largest-scale projects.

That changes in October 2025.

When e-co2 goes live, Fuel Switch will enable Growthpoint tenants of all sizes to access this new market.

 Green energy trading made simple for Growthpoint tenants

What makes this collaboration unique is the functionality pioneered and developed by the partnership, which integrates Fuel Switch directly into Growthpoint’s property portfolio, green energy data and IT systems. The innovation lies in blockchain smart contracts that use IoT devices and business logic to bring all stakeholders together with a digital handshake.

As e-co2 rolls out from October, participating tenants in select Growthpoint buildings will have their smart electricity meter consumption data automatically sent for verification, and the corresponding RECs will be issued directly into secure digital wallets. These wallets are free for Growthpoint tenants and accessed through the Fuel Switch Exchange platform, allowing tenants to access, manage and deploy their RECs based on business needs. They can redeem them to lower emissions or sell them for additional revenue.

This makes Growthpoint the first to offer a commercial-scale, wheeled renewable electricity solution where renewable energy use is certified at the building level and the benefits are made available to tenants in a verified, auditable format.

Fuel Switch’s elegant innovation behind the scenes

Fuel Switch explains that an elegant system of automated actions executes predetermined smart contract rules embedded a secure blockchain data base. The result? Green energy that is independently certified with the highest level of trust and transparency and direct access to an evolving trading market that is usually inaccessible to all but the biggest players due to high participation costs.

With Fuel Switch, transactions that previously took weeks can now settle virtually instantly. Its smart contract technology is a much more cost-effective way to transact leading to marginal fees. Its infrastructure is capable of handling over 10,000 transactions per second, and it is already trusted by major corporates in South Africa.

Democratising the green economy

Werner van Antwerpen, Growthpoint’s Head: Corporate Advisory, says the platform opens new doors, “It is a game-changer for how businesses can participate in clean energy markets and carbon reduction reporting. By combining our e-co2 wheeled green electricity property portfolio with Fuel Switch’s blockchain technology, we’re opening the green energy market to businesses of all sizes, creating measurable environmental impact and generating real financial value.”

 Gideon Maasz, COO of Fuel Switch, adds: “Our mission is to make participation in the green economy easier, quicker, more cost effect and more transparent. Our partnership with Growthpoint accelerates this goal. With blockchain as the backbone, every REC is verifiable, tradeable, and audit-ready, fully aligned with evolving IFRS sustainability reporting standards.”

 While both e-co2 and the Fuel Switch integration support Growthpoint’s long-term environmental goal to achieve net-zero carbon emissions across its portfolio by 2050, the implications are much, much bigger. These solutions are built around Growthpoint’s tenants — thousands of businesses, big and small, in all sectors of South Africa’s economy.

More than that, understanding that a vibrant and healthy green energy market is crucial for energy security and job creation, the development Fuel Switch has undertaken with Growthpoint will expand the green economy for others too. As an open platform, Fuel Switch can be used by any business or individual, globally.

Redefine takes the lead in green building performance

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Redefine takes the lead in green building performance with 3 new Net Zero Carbon certifications

Redefine Properties (JSE: RDF), a leading South African Real Estate Investment Trust (REIT), has reinforced its position as an environmental frontrunner with 3 new Net Zero Carbon Level 2: Building & Occupant Emissions (Measured) certifications awarded by the Green Building Council of South Africa (GBCSA).

This milestone brings the number of Net Zero Carbon certified buildings in Redefine’s South African portfolio to nine, the most of any REIT in the country. The newly certified assets include Convention Tower in Cape Town, as well as Alice Lane Phases 1, 2 and 3 and Ballyoaks Office Park, both located in Gauteng.

“Each certification is a testament to our ongoing commitment to sustainability and performance-driven building operations,” says Ursula Mpakanyane, Head of ESG at Redefine. “Through advanced energy optimisation and strategic use of verified carbon offsets, we are demonstrating that meaningful climate action is both achievable and impactful within the property sector.”

These achievements are underpinned by a rigorous evaluation process governed by the GBCSA’s Net Zero Carbon framework.

The GBCSA’s Level 2 certification recognises buildings that maintain net zero operational carbon emissions over a 12-month period. This is achieved through a combination of high-performance energy management, on-site or off-site renewable energy, and, where necessary, verified carbon offset strategies. The process is rigorous, requiring at least 12 months of measured energy data, verified carbon offset plans, and professional assessment against GBCSA criteria.

Redefine’s achievement reflects years of work to embed ESG into every stage of the property lifecycle. Properties were assessed in collaboration with Solid Green Consulting, who developed and executed carbon offset strategies aligned with Redefine’s sustainability-linked goals.

These additional accreditations follow the 2024 certifications for The Old Warehouse and The Terraces at Black River Park, and Commerce Square which achieved the country’s first Net Zero Carbon Level 2 Precinct certification. Prior to that, 90 Rivonia, 2 Pybus, and Rosebank Link all achieved their respective Net Zero Carbon Level 2 (Measured) certifications in 2023. Each asset contributes to Redefine’s long-term vision of futureproofing its portfolio while delivering meaningful value for both tenants and investors.

“These buildings not only offer sustainability in design and operational performance, but they also stand as flagship assets within our portfolio, setting a benchmark for future developments,” Mpakanyane adds.

Redefine is committed to achieving full net zero carbon performance across all new developments by 2030 and across all existing buildings by 2050. The REIT’s latest certifications mark another step toward meeting the United Nations Sustainable Development Goals, particularly Goals 7 (Affordable and Clean Energy), 9 (Industry, Innovation and Infrastructure), 11 (Sustainable Cities and Communities), and 13 (Climate Action).

With sustainability integrated into its business model and culture, Redefine continues to demonstrate that responsible environmental stewardship and commercial performance can go hand in hand.