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Spear REIT

Spear REIT posts inflation-beating HY2026 growth

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Regional focus pays off as Spear REIT posts inflation-beating HY2026 growth

Spear REIT delivered a strong set of interim results for the six months ended 31 August 2025, supported by stable operational and financial performance, disciplined capital allocation, and continued portfolio growth. The results reflect a period of measured expansion and strategic investment, with Spear remaining the only regionally focused REIT on the JSE, operating exclusively within the Western Cape.

 Key Highlights – HY2026

  • HY26 DIPS growth vs prior period: 5.21%
  • HY26 DPS growth vs prior period: 5.21% (based on 95% payout ratio)
  • Interim distributable income per share: 43.78 cents
  • Interim distribution per share: 41.59 cents (95% payout)
  • Portfolio value: R5.7 billion
  • Portfolio GLA: 487 317 m²
  • YTD collection: 98.96%
  • Occupancy: 95.03%
  • LTV: 13.85%
  • TNAV: R12.10 per share

CEO Quintin Rossi said the first half of the 2026 financial year demonstrated Spear’s ability to balance growth and stability while delivering strategy-aligned outcome from the core portfolio.

“Our exclusive Western Cape focus is a deliberate strategy – it gives us deep local market insight, agility in execution, and the ability to be in close proximity to our assets and tenants,” Rossi said. “The region’s economic resilience, governance quality, and sustained demand for real estate solutions from drivers of economic activity across the board continue to underpin the performance of the core portfolio.”

During the period, Spear concluded R1.074 billion in strategic acquisitions — namely Berg River Business Park (Paarl), Consani Industrial Park (Elsies River), and Maynard Mall (Wynberg). The transactions add over 137 000 m² of additional GLA and will take Spear’s total portfolio to around 624 000 m² once transfers are finalised between October 2025 and January 2026. Acquired at an average yield of 9.54%, all three assets are accretive, meet Spear’s strict investment criteria, and will contribute immediately to distributable income once transferred.

Rossi added: “These acquisitions further strengthen our industrial and retail exposure – sectors where we continue to see consistent tenant demand and strong rental growth potential. Our focus remains on high-quality, cash-generative assets that align with Spear’s long-term distribution and value growth objectives which may also include further portfolio acquisition opportunities within the region.”

Spear’s occupancy rate remained firm at 95.03%, supported by collection rates of 98.96%. Portfolio valuations increased by R107 million, reflecting a 2% uplift over the period. Rental reversions were positive at 1.31%, signalling sustained tenant confidence across the portfolio.

By February 2026, 67% of Spear’s portfolio will be equipped with embedded PV solar infrastructure in line with Spear’s sustainability strategy as the business seeks to place less reliance on fossil-fuel-generated electricity supply whilst harnessing the attractive rate of returns its PV solar portfolio generates.

The company’s loan-to-value ratio of 13.85% and R749 million equity raise in June 2025 provides Spear with dealmaking capacity while maintaining a conservative balance sheet profile.

“Our prudent capital structure gives us flexibility to pursue growth opportunities while maintaining distribution sustainability,” Rossi said. “Liquidity and investor confidence have improved meaningfully, with Spear now trading at one of the narrowest discounts to Net Asset Value in the South African REIT sector.”

In the broader context, the South African REIT market has remained resilient through 2025, with the sector delivering a 14% total return year-to-date, supported by moderating inflation and stable interest rates.

Within this landscape, Spear’s focused Western Cape strategy and consistent DIPS growth position it ahead of sector averages, and it is well-placed to capture ongoing regional upside.

Spear’s long-term strategy remains secured in its Western Cape-only focus, with the REIT aiming to scale to R15 billion in assets under ownership and a market capitalisation of R9 billion over the next decade. Its potential inclusion in the FTSE/JSE All Property Index in March 2026 is expected to further enhance liquidity and institutional participation.

 Outlook

Looking ahead, Spear reaffirmed its FY2026 full-year DIPS growth guidance of 4% to 6%, with a payout ratio maintained at 95%.

“We will continue to prioritise high occupancy, disciplined cost management, and accretive capital deployment,” Rossi concluded. “Our focus is on consistent, predictable growth and delivering long-term value for shareholders through a well-managed, regionally focused portfolio.”

 

Spear REIT’s Acquisition of Maynard Mall

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Spear REIT Expands Western Cape Retail Footprint with Acquisition of Maynard Mall

Spear REIT Limited (JSE: SEA), South Africa’s only regionally focused REIT, has announced the acquisition of Maynard Mall, a 25,969m² convenience shopping centre located in Wynberg, Cape Town. The R455 million transaction further reinforces Spear’s hyper-local investment strategy, targeting high-growth nodes across the Western Cape.

The acquisition aligns with Spear’s objective to grow its portfolio of well-located, high-quality convenience retail assets within the Western Cape. Maynard Mall, centrally located in Wynberg, Cape Town, is a convenience-orientated community shopping centre anchored by Shoprite, with a strong tenant mix comprising 70% national retailers — including Ackermans, Absa Bank, Clicks, Capitec Bank, KFC, Hungry Lion, Nedbank, Pep, Sportscene, and Zone Fitness — as well as essential services such as the Department of Home Affairs and local traders. The centre caters to both daily and weekly shopping needs, drawing from a broad residential catchment area and the commuter market, with an annualised footfall of 6 million shoppers.

“This acquisition is a pivotal extension of our retail footprint in Cape Town’s established Wynberg node,” said Quintin Rossi, CEO of Spear REIT. “It deepens our exposure to resilient consumer retail trade and enhances our income stability profile, supported by a weighted average lease expiry of 57 months.”

The anticipated transfer date is 1 January 2026, with the acquisition being funded through a combination of cash from Spear’s recent R 749 million capital raise and secured debt facilities. The transaction is set to deliver an initial yield of 9.55%, with an additional R20 million earmarked for medium-term capital expenditure. Spear has identified asset enhancement capital expenditure measures of up to R 20 million to be carried out over a three to five-year period to enhance the value proposition of Maynard Mall. These items include the potential increase in the self-storage offering, future expansion of the PV solar installation, modernisation of selected lifts, escalators, HVAC equipment and mechanical installations. Assuming the full asset enhancement capital expenditure is accounted for on the transfer date, the post capex, stabilised yield would be 9.15% – 9.3%.

“Spear has actively pursued growth opportunities in Cape Town’s convenience retail sector — on terms that aligned with its strategic and financial criteria; requiring management to remain patient, selective, and firmly committed to its investment strategy,” Rossi continued. “Today’s announcement gives credence to our approach.”

The transaction is subject to the approval by the Competition Commission. Once implemented, Spear’s retail portfolio will increase to approximately R1.4 billion in value, comprising 81,205m² in gross lettable area.

In addition to Maynard Mall, Spear recently announced the acquisition of Consani Industrial Park for R437 million. Following the implementation of both transactions, Spear’s loan-to-value (LTV) ratio is projected to be 28%, well below the company’s target range of 38%–43%, providing sufficient capacity for future growth opportunities.

These recent transactions follow the successful integration of Spear’s R1.15 billion Western Cape portfolio acquisition in October 2024, which expanded the group’s asset base to R5.5 billion and delivered 97% occupancy at FY2025 year-end. Following the implementation of the Maynard Mall and Consani Industrial Park acquisitions, Spear’s total asset base is expected to increase to R6.6 billion. Notably, Maynard Mall also includes a 924 kWp solar plant, supporting Spear’s sustainability strategy by contributing to energy efficiency and reducing environmental impact.

“Building on our strong FY2025 performance and positive momentum into FY2026, we remain focused on executing our Western Cape strategy — targeting high quality assets in established nodes underpinned by robust leasing and real estate fundamentals,” concluded Rossi.

Spear will continue to focus on measured growth across the Western Cape, with a focus on retail, commercial, and industrial assets that align with its long-term investment strategy.

Spear Strengthens Industrial Portfolio with Key Acquisition

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Spear REIT Limited (JSE: SEA), South Africa’s only regionally focused Real Estate Investment Trust, has announced via SENS the acquisition of Consani Industrial Park, located in the established industrial hub of Elsie’s River Industria, Western Cape. The acquisition, valued at R437.3 million, marks another significant step in Spear’s ongoing expansion of its Western Cape industrial property portfolio.

Quintin Rossi, CEO of Spear, highlighted that the acquisition aligns with the company’s strategy to build a resilient and high-growth portfolio of industrial assets within the Western Cape, a region that continues to demonstrate strong economic fundamentals. “The Western Cape is the essence of our long-term growth strategy. We remain highly selective in our acquisitions, and Consani Industrial Park offers a prime location with a proven track record of stability and future growth potential. This asset adds meaningful scale, long-dated income profiles and quality to our portfolio and reaffirms our ongoing commitment to the industrial sector.”

Consani Industrial Park, situated on a 10.64-hectare erf, comprises a total gross lettable area (GLA) of 80,657 m² and is multi-let to a diverse range of industrial tenants, underpinned by long-term lease tenures. The property is strategically situated within a secure and established industrial precinct that continues to attract large-format occupiers, due to its proximity to key transport routes, reliable energy infrastructure, and organic growth potential.

The transaction supports Spear’s broader strategy of acquiring income-producing assets in proven nodes, offering both yield enhancement and long-term value creation. The acquisition was concluded at an initial yield of 9.71%, with additional value to be unlocked through a planned R34 million capital investment program over the next five years, focused on operational optimisation and strategic enhancements.

According to Rossi, Spear’s regional focus has been instrumental in identifying and executing this strategic acquisition. “We have a hands-on, laser-focused team dedicated to driving our growth strategy. Our approach is to be patient and selective when choosing assets that align with our investment objectives. We are committed to ensuring that each acquisition is the right fit, delivering long-term sustainable income and value for our shareholders.”

The acquisition will be funded through a combination of debt facilities and available cash reserves, following Spear’s successful private placement, which was concluded in June 2025.

The addition of Consani Industrial Park further reinforces Spear’s strategic footprint in the Western Cape, a region characterised by robust demand, positive economic drivers and resilient real estate fundamentals.

“Spear remains committed to building a defensive portfolio that delivers both stability and future growth. Through measured expansion and active asset management, with a focus on retail, commercial, and industrial assets that align with our long-term investment criteria, we aim to create sustainable value. With the forthcoming addition of Berg River Business Park in Paarl and Consani Industrial Park in Elsies River Industria, both subject to competition commission approvals, we are confident that Spear’s continued investments across the Western Cape will deliver strong returns for our shareholders,” concluded Rossi.

Spear REIT acquires Berg River Business Park in Paarl

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Spear REIT has announced the acquisition of the Berg River Business Park, a 30,000m² multi-let industrial park in Paarl, Western Cape.

The acquisition value is recorded at R182,150,000, with an initial yield to the Spear platform of 9.35%. The transaction will be settled via a Section 42 asset-for-share arrangement, with the sellers receiving the full value of their equity in Spear shares.

Located at 46 Distillery Street, along the Berg River in the Drakenstein Municipality, the Berg River Business Park serves a mix of tenants across the food, agriculture, wine, and clothing sectors. The area forms part of a growing industrial node in the Western Cape and benefits from its proximity to the N1 highway, enhancing logistical efficiency for its tenants.

Key Features of Berg River Business Park:

  • Strategic Access: Proximity to major routes, including Lady Grey Street and the N1 highway.
  • Security Infrastructure: The park features 24-hour security, CCTV surveillance, and electric fencing.
  • Energy Efficiency: This includes solar power generation capacity, reducing energy costs, and reducing environmental impact.
  • Operational Resilience: Offers a power supply capacity of 3,500 kVA and full load-shedding redundancy.
  • Connectivity: Equipped with high-capacity fibre-optic infrastructure.
  • Flexible Industrial Space: Units designed with high clearance, modern amenities, and ample yard areas to support various operational requirements.

Commenting on the acquisition, Quintin Rossi, CEO of Spear REIT, said: “One of the advantages of Spear’s Western Cape focus is that the entire province presents investment opportunities. This high-quality acquisition marks our entry into the Paarl real estate market and our first investment in the well-established industrial node of Paarl Industrial. We are very pleased with the asset type, the tenant mix, and the solid rental growth prospects that this food and agri-logistics park brings to the core Spear portfolio.”

The acquisition marks Spear’s continued strategy to grow its portfolio in high-performing nodes across the Western Cape, with a particular focus on assets that offer income resilience and long-term capital appreciation potential.

Spear REIT’s new Independent Non-Executive Director

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Spear REIT welcomes Joan Solms as Independent Non-Executive Director

Spear REIT Limited (JSE: SEA), a leading real estate investment trust with a dedicated focus on the Western Cape, has announced the appointment of Joan Solms to its board. A distinguished professional in the property industry, Solms joins as an independent non-executive director and member of the audit and risk committee, effective 1 April 2025.

Solms brings significant experience in banking and financial services, particularly within the property sector. A qualified chartered accountant with over two decades of expertise in property and investment banking, she has held several high-profile leadership roles; most recently serving as executive vice president of Standard Bank’s corporate and investment banking division, where she led the Western Cape real estate finance division until November 2024.

Prior to that, Solms served as executive director and chief operating officer of Ingenuity Property Investments Limited, a JSE-listed property investment company. Recognised for her exceptional contributions to the South African property industry, she was named Women’s Property Network’s Professional of the Year in the private sector in 2017.

Commenting on the appointment, Quintin Rossi, CEO of Spear REIT, said:

“We are honoured to welcome Joan to the Spear board. She is a highly respected expert in her field, and her vast experience in the Western Cape property market—particularly in financial services and banking—will add significant value to our team. This appointment comes at a crucial time in Spear’s growth trajectory, and we are excited to have someone of Joan’s calibre join us on this journey.”

Solms reflects on her appointment as a full-circle moment, recalling one of her earliest major banking transactions – assisting the founders of Spear with their initial funding.

“It’s remarkable to see how far Spear has come since those early days. I fondly remember my time at Nedbank in 2011 when I facilitated their initial funding, long before their JSE listing in 2016. Spear’s ethos and commitment to fostering a culture of goodwill, particularly in developing and empowering women in the property sector, resonate deeply with me. I am looking forward to contributing to the company’s continued success.”

Solms’ appointment highlights Spear’s unwavering commitment to maintaining a Board of Directors that are dynamic and experienced professionals with top-tier industry expertise as it continues to expand its presence in the Western Cape real estate market.

Spear REIT FY2025 Pre-Close reflects a transformative year

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Spear REIT Limited (JSE:SEA), the Western Cape-focused real estate investment trust has provided an operational and financial update in its FY2025 pre-close presentation for the period ending 28 February 2025. Spear REIT’s FY2025 stands out in the sector due to its strategic focus and consistent robust financial metrics. The company reported a 13.58% year-on-year increase in portfolio value, reaching R5.26 billion assets under ownership, and maintained a high occupancy rate of 96.02% with a further 100bps increase in occupancies since HY2025. The company remains on track to deliver on its objectives and forecast, reporting impressive performance metrics and continued portfolio growth.

Highlights

  • Portfolio value: 26 billion, reflecting a 13.58% increase year-on-year
  • Market capitalisation increase of 5 billion to R 3.3 billion
  • Loan-to-value (LTV) ratio: 97%
  • Interest coverage ratio (ICR): 34 times
  • Fixed debt ratio: 18%, with an average debt expiry of 24 months
  • Proposed final payout ratio: 95%
  • Portfolio occupancy rate: 02%

At the pre-close presentation, Spear’s CEO, Quintin Rossi, noted: “FY2025 has been a transformative year for us, driven by the success of the new Western Cape portfolio acquisition. Thanks to our regional operating strategy, the portfolio has been successfully stabilised into the core portfolio ahead of schedule and under budget. Our commitment to the Western Cape real estate market has resulted in sustained portfolio growth, high occupancy levels, and strong cash collections.”

Portfolio and operational performance

  • Occupancy:02%, supported by a strong tenant retention strategy
  • Portfolio in-force escalations:34%
  • Renewals and new lets: 86,359m² concluded versus 84,620m² expiring
  • Cash collections:78% year-to-date
  • Rental reversions: Portfolio-wide positive reversion of 52%

CFO Christiaan Barnard added: “Active capital recycling and disciplined financial management have bolstered our balance sheet, ensuring a resilient and sustainable capital structure. Our lower cost of debt and risk mitigation strategies continue to support our financial stability which has been a positive contributor to overall performance during the year.”

Spear has successfully implemented a R1.15 billion portfolio acquisition, significantly enhancing its asset base and bolstering its market presence with this accretive 93 500m2 diversified portfolio acquisition. “With an entrepreneurial management team that remains laser-focused on active asset and portfolio management, the Spear investment team is looking ahead towards the new financial year with approximately R1 billion in new acquisition opportunities currently under review, positioning the company for continued and sustained growth”, announced Rossi

Spear’s organic development pipeline is set to add future value to the core portfolio, with strategic projects aimed at expanding its industrial and mixed-use asset base. The GTX Park in George, a 30,000m² industrial development, is progressing with a total capital investment over 5 years of R400 million. Bravo Park in Blackheath is set to expand to Phase 2 by 7,000m², with an R82 million capital investment. Meanwhile, the Marine Drive mixed-use development in Paarden Eiland, anticipated to commence the rollout in phases, will require a total capital investment of R1.5 billion over five years.

Sustainability remains a core focus, with over 60% of the portfolio now equipped with solar PV infrastructure. Ten new solar PV systems are scheduled for installation, following the acquisition of the new portfolio. Furthermore, Spear is exploring wheeling projects within the City of Cape Town to enhance energy security and resilience across its portfolio.

Outlook for FY2025

Looking ahead, Spear remains focused on growth, value creation, and sustainable operations. Management reaffirmed its full year guidance of distribution per share (DIPS) growth of between 2% and4% for FY2025 while maintaining a 95% payout ratio.

Rossi concluded: “With strong leasing momentum, solid regional real estate fundamentals, an enhanced portfolio, and our disciplined financial approach, we are confident in our ability to navigate evolving market dynamics and deliver sustained value to our stakeholders in line with our mission statement.”

Spear will release its results for the full year FY2025 on 22nd May 2025.