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Vukile Property Fund

REITs shine in Sunday Times Top 100 Companies

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REITs shine in Sunday Times Top 100 Companies as sector momentum builds

Signalling a powerful comeback for the investment class, REITs Dipula, Fairvest and Vukile place in the top five

South Africa’s real estate investment trust (REIT) sector has capped a strong year with significant recognition in the Sunday Times Top 100 Companies 2025 announced on 9 November. Dipula Properties took the overall top spot, Fairvest ranked second and Vukile Property Fund placed fifth, confirming three REITs in the top five and broad strength across all listed property.

Joanne Solomon, Chief Executive Officer of the SA REIT Association, says the recognition reflects improving fundamentals across the sector. “Seeing REITs lead the Top 100 this year highlights disciplined capital allocation, stronger balance sheets and consistent dividend delivery. Investors are recognising the sector’s renewed earnings trajectory and the important role REITs play in diversified portfolios.”

This strong showing comes in a year of improving market performance. The October SA REIT Chart Book recorded a 10.8% monthly total return for the SA REIT Index, the strongest monthly gain since 2021, taking year to date performance of the sector to 26.4% up until 31 October 2025. Liquidity improved across the board with several high-quality portfolios accessing equity at prices closer to reported net asset value which signals a healthier cost of capital. Ian Anderson, compiler of the Chart Book and Head of Listed Property at Merchant West Investments, notes that October marked a turning point as investors rotated back into REITs at scale.

The Top 100 Companies in context

The Sunday Times Top 100 Companies ranks JSE listed companies by compound annual growth rate over a five-year period on a theoretical R10 000 investment with dividends reinvested. The analysis adjusts for corporate actions such as dividends, capitalisations, unbundling, share splits and consolidations. Companies must meet minimum size and liquidity thresholds and be active on the JSE throughout the measurement window. The 2025 results were compiled from market data, verified independently and published as a special Sunday Times supplement.

REIT company perspectives

Dipula Properties, the overall 2025 winner, marked its 20th anniversary with a refreshed brand and continued focus on community and convenience retail. In the Sunday Times Top 100 Companies special supplement, CEO Izak Petersen says, “The past 20 years have been an incredible journey filled with lessons, challenges and growth. We’ve played the cards we were dealt with resilience and determination, consistently delivering sustainable returns to our shareholders.” He adds, “We invest in retail properties that enhance community wellbeing by providing well located trading spaces and convenient access for shoppers. Our portfolio includes defensive retail centres in urban, township and rural areas across South Africa that are tailored to meet local needs and offer essential goods and services.”

Fairvest, ranked second, has been rewarded for its transformation into a retail-only REIT. CEO Darren Wilder remarks in the Sunday Times supplement, that the company is disposing of non-core assets and reinvesting in retail-focused properties. “By implementing this strategy, Fairvest is moving toward becoming a retail-only REIT, focused on the market in which it has extensive experience. The management team will continue to implement this strategy, with minimal to no value destruction. Over 70% of revenue is already generated from Fairvest’s retail portfolio,” he says.

Vukile Property Fund, fifth in the Top 100, highlighted the benefits of a clear strategy and selective offshore growth. CEO Laurence Rapp says in the supplement, “We’ve stayed true to a well-defined strategy and executed it with discipline. We specialise in retail, and we do so with deep operational intent. That means understanding the consumer, designing centres that are tailor made to their needs and align with tenant success. Growing affinity with shoppers grows value for tenants and grows earnings for shareholders.” On the group’s Iberian expansion he notes, “Our entries into Spain and then Portugal were contrarian and demonstrate how our ability to see opportunity ahead of the market and to act with entrepreneurial yet disciplined dealmaking has been key to scaling the business.”

Wider sector representation

Beyond the top five, REITs and other listed property companies were well represented across the rankings, including Fortress Real Estate Investments, SA Corporate Real Estate, Attacq, Hyprop Investments, Emira Property Fund, Redefine Properties, NEPI Rockcastle, Resilient REIT, MAS, Stor-Age Property REIT, Sirius Real Estate, Growthpoint Properties, Burstone Group and Equites Property Fund, among others. This breadth reflects a property sector that has streamlined portfolios, recycled capital into high-confidence properties and rebuilt investor conviction through consistent distribution guidance.

Solomon says, “REITs have responded to a tough cycle with portfolio optimisation and prudent funding. The sector is now positioned to deliver income growth ahead of inflation with improving access to capital. The Sunday Times recognition underscores that progress and the operational resilience that supports it.”

SA REIT Chart Book and conference

The latest SA REIT Chart Book provides monthly sector performance, valuation, yield and capital markets intelligence for investors and media. The October 2025 edition was released on 6 November 2025 and can be accessed here.

The SA REIT Conference 2026, proudly sponsored by Nedbank Corporate and Investment Banking’s Property Finance division, takes place on 12 February 2026 at The Houghton Hotel, Johannesburg, with a keynote by Peter Verwer, Executive Chairman of Futurefy. Register here.

Vukile extends its consistent strong operational performance

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Vukile Property Fund (JSE: VKE), the leading specialist retail real estate investment trust (REIT), delivered a strong pre-close trading update for the five months from 1 April to 31 August 2025, confirming it is confidently on track to meet its full-year guidance of at least 8% growth in funds from operations (FFO) and dividends per share (DPS).

Operational strength is evident across Vukile’s portfolio of well-located, high-performing shopping centres, which are designed and managed around the customers and communities they serve. Driving positive momentum is the active integration of recently acquired assets in Spain and Portugal, with both Iberian portfolios delivering outstanding metrics, supported by top-tier performance from the South African portfolio.

Through its 99.5%-held Spanish subsidiary Castellana Properties, Vukile acquired its fifth Portuguese asset, Forum Madeira, for EUR63 million at a yield of 9.5% in April 2025. The transaction places 65% of the group’s more than R50 billion of assets, and 60% of its net property income, offshore.

“We signalled to the market that our operational priority was integrating, optimising and unlocking value from our newly acquired Iberian assets. Significant progress has already been made, including the alignment of processes and data management, allowing the Castellana team to start implementing their expertise in value-add asset management initiatives,” confirms Laurence Rapp, CEO of Vukile Property Fund.

The Iberian portfolio demonstrated significant strength. Occupancy across the portfolio is 99%. Positive rental reversions totalled 3.4% — 2.8% in Spain and 6.17% in Portugal. Sales grew 5.7% in Spain and 4.1% in Portugal, or 5.1% in total, with footfalls up 3.0% across the board.

In the South African portfolio, all key metrics improved or remained in line with the prior period’s excellent results. Like-for-like net operating income grew 8% and vacancies remained below 2%, reflecting sustained high occupancy and strong demand for Vukile’s retail space across all segments. Vukile reported positive rental reversions for the fourth consecutive year, which are now growing at around 1.6%, with 83% of leases agreed at positive or flat rental levels. Portfolio trade and footfalls increased, led by township and rural malls. Vukile successfully reduced its cost-to-income ratio yet again, to 13%, led by additional solar PV installed and targeted cost efficiencies.

Vukile continued to enjoy excellent support in the local debt capital market, with its R500 million bond issuance in August 2025 six-times oversubscribed and 21 investors participating. It achieved the lowest margins since the DMTN programme launched in 2012. In addition, GCR upgraded Vukile’s credit rating to AA+(za) with a stable outlook.

“Vukile has commenced FY26 with robust and sustainable operational and financial strength. We remain open for business with an early-stage pipeline of deal opportunities, which will be subject to our disciplined capital allocation ensuring the deals we do are both strategically aligned and financially accretive,” says Rapp.

Vukile Property Fund will update the market with revised guidance when it reports results for the six-month interim period to 30 September, on 26 November 2025.

Vukile’s classroom campaign empowers children

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Vukile’s classroom campaign empowers Dobsonville’s children to challenge harmful norms

DOBSONVILLE, Soweto — In a bright classroom at Margaret Gwele Primary School, a group of Grade 5 girls stood a little taller — literally and figuratively — as they learned to use their voices, set boundaries and speak their worth. In the same school, a few doors down, a group of Grade 5 boys explored ways of practicing empathy and discussed what it truly means to be an active bystander.

 These lessons mark the next chapter in Vukile Property Fund’s Empowered Women initiative, now in its second year. The initiative has already reached more than 900 women through GBV awareness and support events hosted across Vukile’s shopping centre portfolio throughout South Africa.

Vukile’s powerful new programme, a partnership with Action Breaks Silence aimed at preventing gender-based violence (GBV) before it starts, titled “Empowerment, Empathy and Active Bystander”, is being delivered to over 570 Grade 5 and Grade 6 learners across six schools in the Dobsonville area of Soweto, where Vukile owns Dobsonville Mall. Its addition to Vukile’s Empowered Women initiative delivers GBV prevention work directly into primary schools.

The media and key stakeholders were invited to witness the programme in action today, as trainers led real sessions with Grade 5 learners at Margaret Gwele Primary, sharing the chance to experience firsthand how education, empowerment and empathy can change the trajectory of an entire community.

“This powerful programme of preventing violence against women and girls is about planting seeds of confidence, empathy and awareness in children at exactly the age when gender norms start to solidify. By reaching children now, we can disrupt harmful cycles that often span generations,” says Marijke Coetzee, Director: Marketing and Communications at Vukile Property Fund.

 In addition to Margaret Gwele Primary, the programme is being delivered at Hector Pietersen, Enkolweni, Phakamani, Livhuwani and Rebongwe Primary.

Active and responsive community investment

The programme, developed by Action Breaks Silence, includes12 one-hour sessions: six each in Grade 5 and 6. Grade 5 is the only time that the programme holds separate sessions for girls and boys to create safe spaces at a critical time for the children.

The same groups of children come together in Grade 6. Over six weeks of sessions, one of their key projects is to create a poster campaign that educates their peers about tackling sexual harassment and challenging violence against women and girls. The posters are displayed around the schools, and the winning team is celebrated at a public assembly. All this comes together to create a whole school initiative, helping to normalise speaking out against sexual harassment and reinforcing that children have the power to make a change.

“Vukile’s commitment to this programme furthers our shared goal to challenge and rewrite harmful norms before they take root,” says Niki Hall-Jones, South African Programme Manager for Action Breaks Silence. “Research shows that gender norms and harmful masculinity start solidifying by the ages of 10 to 12. This highlights the importance of going into schools early with age-appropriate content and proven methods to help children reimagine what respect, power and kindness look like, and shift trajectories before violence becomes internalised.”

 A multi-faceted platform for local change

Besides the children who receive this potentially life-changing training, Vukile’s investment in this project has created employment and skills development for local youth.

Of the seven facilitators running the Vukile’s Dobsonville programme, four are newly trained facilitators from the Dobsonville area, while three are experienced trainers from Soweto. The new facilitators have been trained through a rigorous “train-the-trainer” process that includes modules on child safeguarding, communication and diversity, equity and inclusion, as well as programme delivery. A peer-to-peer mentorship model ensures the experienced facilitators are on hand to guide and support new recruits.

This work transforms the lives of the youth facilitators as much is it empowers the children they train. The young change-makers become visible role models in their own communities.

“This programme is a commitment to the community of Dobsonville,” says Thato Matlala, Centre Manager at Dobsonville Mall.  “Our mall is a community anchor, and we take that responsibility seriously.”

 Taking community-centred action

Vukile’s investment in long-term community wellbeing is well established and constantly evolving. From centre-level events to national partnerships, Vukile aligns all its social impact initiatives to five core pillars, one of which is GBV prevention. By tracking data and measuring outcomes, Vukile ensures that its impact is clear and sustainable.

For Coetzee, the Empowered Women initiative reflects the community-first ethos that defines Vukile. “We strive to embed purpose into how we operate on the ground, for our customers and their communities, and the Empowered Women initiative is one of the ways we are doing that.”

 She adds that she hopes the confidence and empathy shared with the children through this project also ignites purpose within their lives, because everyone can make a difference. “Any investment in children and a society without violence against women and girls is an investment in a better future. With this programme, we see children not just learning, but leading.”

 

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.

 

 

Vukile’s Retail Academy expands into Daveyton Mall

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Vukile Property Fund (JSE: VKE), the specialist consumer-led retail real estate investment trust (REIT), has launched a new multi-tenant emporium at Daveyton Mall as part of the next phase of its game-changing Vukile Retail Academy. The project brings fresh, community-driven retail experiences to local shoppers while helping small businesses grow into sustainable enterprises.

Now in its third year, the Vukile Retail Academy continues to deliver on its founding aim: providing access to formal retail for promising entrepreneurs. Participants receive rent-free premises, fit-out support and hands-on mentorship. The initiative forms part of Vukile’s wider commitment to inclusive growth, tenant diversity and shared opportunity across the retail ecosystem.

Matching retail strategy with community needs is at the heart of Vukile’s singular business model. Its popular, high-performing shopping centres – all 33 of them in South Africa and the 20 retail assets abroad in Spain and Portugal – serve as platforms for local growth in each location. They do this by supporting entrepreneurs, integrating cultural identity, and fostering loyalty through authentic engagement. This customer-centric, community-first approach is changing retail landscape.

“We’re invested in more than shopping centres. We’re invested in the communities they serve. The success of our centres is grounded in understanding local needs, and meeting and exceeding them,” says Laurence Rapp, CEO of Vukile Property Fund. “With a customer-first approach, we co-create retail spaces and experiences that genuinely reflect and serve their unique communities while celebrating local talent, culture, community and innovation. The Vukile Retail Academy is a tangible expression of that philosophy.”

A programme of proven impact

 Launched in 2022, the Vukile Retail Academy has already made measurable impact. The first intake of eight entrepreneurs received 1,035 sqm of retail space to trade from across four shopping centres, along with tailored business and operational support. Mentorship focused on developing a resilient business mindset, enhancing store operations and building customer engagement strategies

The results speak volumes. From the 2023 Dobsonville cohort, Fakizinto Concepts and Zanwabo Cakes became full-time tenants. In 2024, four businesses from Randburg Square – Lonja Beauty Studio, Edenvinne, Vero’s Cake and Jeleni & Phindi Art Studio – have also joined the formal tenant mix, underlining the Vukile Retail Academy’s role in long-term tenant development.

“We’re seeing dreams become sustainable businesses,” says Itumeleng Mothibeli, MD SA at Vukile. “At the heart of the Vukile Retail Academy is a belief in people and potential. This programme is about removing barriers, nurturing talent and actioning our deep commitment to building the next generation of retailers, who will shape the future of South African retail.”

A new shared-format concept

 This year, the Vukile Retail Academy introduces an emporium-style space at Daveyton Mall, bringing five small businesses under one roof. The shared space allows entrepreneurs to share costs, test products and grow visibility in an animated, high-footfall retail setting.

The not-to-be-missed up-and-coming brands in the new emporium, are:

  • Seven Heartbeats: A cultural lifestyle brand blending contemporary fashion with traditional African design.
  • Cossen: African-inspired fashion and footwear with live shoemaking experiences.
  • Thesis Lifestyle: A Soweto-born streetwear brand celebrating township pride.
  • GameOn.Africa: A tech-driven edutainment hub promoting digital learning and innovation.
  • PeaPrido Elegance Events: A Daveyton-based events company delivering personalised, high-quality experiences.

Some of these businesses are expanding from existing markets or online platforms. Each comes with its own story, contributing fresh energy and relevance to the mall’s offering.

Daveyton Mall, first opened in 1993, is one of South Africa’s first township malls. It was recently upgraded and extended by Vukile and stands as a modern reflection of the colourful heritage of its community. The new design celebrates local culture through architectural features, murals and art installations. This culturally rich environment creates a powerful platform for a retail experience that truly belongs to its people.

Reflecting its role as a community anchor, the mall’s redevelopment included significant local participation, resulting in a retail centre that does more than serve the community; it reflects and empowers it. Its trailblazing new emporium of entrepreneurs extends this ethos.

Building a fresh retail ecosystem

 At Vukile, retail is about people before products. The Vukile Retail Academy reflects its longer-term ambition to help shape a retail sector that mirrors the depth and potential of South Africa’s entrepreneurial talent.

“This flagship initiative is rooted in our commitment to building a retail ecosystem where local talent thrives and communities feel seen, supported and proud. It’s about creating lasting partnerships for a better South Africa,” adds Rapp.

Vukile produces powerful results in a pivotal year

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Vukile produces powerful results in a pivotal year and is primed for further growth

Vukile Property Fund (JSE: VKE), the leading specialist retail REIT, reported a standout set of results for the financial year ended 31 March 2025, reflecting a transformative year of dealmaking, ongoing operational excellence, and decisive and disciplined capital deployment. Delivering on its market guidance, Vukile achieved 3% growth in full-year funds from operations (FFO) per share and increased its dividend per share (DPS) by 6%.

Vukile announced upgraded FY26 guidance, forecasting growth of at least 8% in both FFO per share and DPS.

Laurence Rapp, CEO of Vukile Property Fund, comments, “We are pleased to report strong results in a transformative year, distinguished by accretive strategic growth and capital rotation. This outstanding performance validates Vukile’s strategy, expands its earnings base and positions the business for compounding future growth.”

It’s total property assets now exceed R50 billion, reflecting an ambitious yet tightly focused investment strategy. During the year, Vukile grasped a golden window of opportunity that expanded its Iberian direct asset base by nearly 60%, consolidating its footprint across two of Europe’s most resilient consumer economies. Now, 65% of the group’s assets, and an expected 60% of its net property income is derived offshore.

Vukile entered Portugal during the year through its 99.6% held Spanish subsidiary Castellana Properties. The fully-funded multi-asset entry capitalises on Portugal’s strong economic growth and fragmented retail property sector that is ripe for consolidation, mirroring opportunities seized in Spain.

Continuing its creative dealmaking, in Spain Vukile exited its investment in Lar España with a capital profit of €82 million, concurrently redeploying the proceeds into acquiring the Bonaire Shopping Centre in Valencia with a cash-on-cash return exceeding 8% thereby enhancing sustainable earnings.

Vukile closed the year with an investment portfolio of 33 urban, commuter, township and rural malls in South Africa,15 shopping centres and retail parks in Spain and five shopping centres in Portugal.

 “In South Africa, Vukile’s robust operating platform yet again delivered outstanding results,” notes Rapp.

Valued at R16.7 billion, Vukile’s defensive, dominant South African retail portfolio delivered strong performance and growth. The value of its retail portfolio rose by 8.5%, while like-for-like net operating income increased by 6.4%. Vacancies remain exceptionally low at 1.7%, supported by active letting, with positive rental reversions of 2.4%. Notably, 85% of leases were signed at the same or higher rental levels, with tenant retention at 91%. The total portfolio recorded trading density growth of 5.2% – with its township and rural portfolio outperforming at 6.7% – driven by Vukile’s shopper-first approach, which continues to boost footfall and sales. The portfolio’s cost-to-income ratio was 15.3% – its lowest level in a decade – reflecting proactive cost management, with the benefit of solar energy contributing to significant efficiency gains.

Vukile’s solar PV rollout in South Africa has been highly successful, boosting margins and advancing its path to carbon neutrality. Over the year, solar capacity grew by 67%, with 14.4MWp added to the existing 21.6MWp. Solar power now supplies 27% of the portfolio’s energy needs. Vukile has identified a further 10.6MWp of solar projects for FY26 and is finalising the agreements for two wheeling projects totalling 2MWp.

Adding value to its South African portfolio through acquisitions and developments, Vukile’s R113 million redevelopment of Mall of Mthatha (formerly BT Ngebs), in which Vukile acquired a 50% stake in May 2024, has delivered strong early performance, with the vacancy rate dropping from 16% when acquired to just 2%. The highly accretive project is set for completion in September 2025. The comprehensive R141million Bedworth Centre strategic upgrade in Vanderbijlpark, delivered a high-convenience, community-focused retail destination with enhanced tenant mix, aesthetics, amenities, access and security.

Vukile’s well-established investment in Spain, together with its new investment in Portugal has clearly cemented Castellana’s position as a market leader, capitalising on the advantages of the region’s status as a European growth powerhouse.

The Economist ranked Spain as Europe’s top-performing economy in 2024, with GDP growth of 3.2% and forecasts of 2.3% in 2025. The country’s economic growth is fuelled by strong household spending. Disposable income rose by 8.7%, supported by higher salaries, employment and savings levels. Additionally, tourism hit a record €126 billion with 94 million visitors.

Portugal’s economy outperformed expectations with 1.9% growth in 2024, driven mainly by household consumption, with record-high employment levels, real wages increasing and high disposable income. Private consumption rose 3.2% in 2024. Growth is forecast at 2.3% in 2025. Like Spain, Portugal is benefiting from easing inflation, projected to fall to 2.3% in 2025.

Castellana’s R32.9 billion, 20-asset Iberian portfolio remains effectively fully let, with marginal vacancies of around 1% and 95% of space let to blue-chip international and national tenants. Portfolio like-for-like net operating income grew 6.4%. It achieved high positive rental reversions and new lettings of 17.31%. The portfolio has a weighted average lease expiry of 8.8 years. Excellent trading metrics featured across the portfolio, with footfall up 2.4% and sales increasing by 4.3%.

“Castellana’s on-the-ground presence and expertise has added substantial value to the Iberian portfolio. This year has been one of rapid growth in the region, and our priority is to crystalise potential in our newly acquired assets and deepen value within our existing footprint.” says Rapp.

Vukile’s balance sheet remains exceptionally strong, with a stable LTV of 40.95% and an increased ICR of 2.9-times. The REIT enters FY26 with a well-hedged balance sheet and minimal debt maturities of less than 2% of group debt in FY26, as well as a very healthy liquidity position, with cash and undrawn facilities of R4.6 billion.

Vukile has an AA(ZA) corporate rating reaffirmed by GCR with a positive outlook. Fitch has awarded Castellana an international investment-grade credit rating of BBB- also with a positive outlook.  Over the year, Vukile increased its green and sustainability-link debt by 69% from R1.3 billion to R2.2 billion, aligning its funding strategy with its continued commitment to ESG goals.

Rapp concludes, “Vukile is in a strong position, underpinned by a clear strategy, a proven operating platform, a strong balance sheet, high-quality assets and disciplined capital management. It is well placed to deliver sustainable real growth by maintaining operational excellence, advancing value-added projects within existing portfolios and pursuing further opportunities in our core markets. We are committed to our proven scalable consumer-led model to create value for all our stakeholders.”