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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.

SA REITs surge in October, the strongest monthly gain since 2021

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SA REITs rocket 10.8% in October, the strongest monthly gain since 2021

South Africa’s real estate investment trusts surge as liquidity returns, dividends accelerate and funding costs ease

South Africa’s real estate investment trusts (REITs) staged a decisive rally in October. The SA REIT Index returned 10.8% for the month, outpacing equities at 1.6% and bonds at 2.6%. Year to date to 31 October 2025, the sector is up 26.4% as earnings momentum, firmer sentiment and lower funding costs converge.

“October marked a turning point. Investors rotated back into REITs at scale, pricing in faster dividend growth and a healthier cost of capital,” says Ian Anderson, Head of Listed Property and Portfolio Manager at Merchant West Investments and compiler of the monthly SA REIT Chart Book. He notes that trading activity was intense with just under R14 billion changing hands in the month, excluding Vukile’s R2.65 billion accelerated bookbuild placed at a small discount to its net asset value (NAV). “This is what renewed confidence looks like. Balance sheets are stronger, distributions are accelerating and selective external growth is back on the table.”

Published by the SA REIT Association and compiled by Anderson, the SA REIT Chart Book distils sector performance, valuation, yield and capital markets activity into clear visual intelligence along with informed commentary for investors and media. The latest October issue was released on 6 November 2025. (Benchmark and methodology: SA REIT Index total return, FTSE/JSE indices, end-October 2025.)

Highlights from the SA REIT Chart Book October 2025

  • Sector total return: +10.8% month-on-month
  • Equities: +1.6% month on month
  • Bonds: +2.6% month on month
  • SA REIT year to date: +26.4%
  • Broad participation led by counters such as Growthpoint, Hyprop, Redefine, Resilient, Spear and Vukile

Market leadership was underpinned by improving operating updates, resilient occupancy and measurable relief on interest expense. Several REITs reached or approached all-time highs, while bookbuild activity at pricing close to reported NAV signals a reopening of the equity window for quality portfolios.

What drove the surge

Anderson attributes October’s strong advance to a combination of softer long bond yields, visible distributable income growth and narrowing discounts to NAV. “On a forward view we see sector dividends compounding in the high single digits, with a current forward yield near 7.5%. If bond yields remain range bound, double digit total returns over the medium term are achievable,” he says.

Context and correlation

The sector’s risk / return profile continues to differentiate against local equities and bonds, with five-year correlation metrics and rolling return components reinforcing the diversification role of REITs in South African multi-asset portfolios. The SA REIT Chart Book details this across total return indices, yield differentials and rolling distribution growth.

With investor demand returning and the cost of both debt and equity improving, selectively accretive acquisitions, redevelopments and new developments are set to feature again. “After October’s rerating, the heavy lifting shifts back to earnings and cash flows. That is a constructive handover for a sector that has rebuilt its fundamentals,” Anderson says.

Company updates

Several noteworthy company developments during October reflect renewed market activity and investor confidence across South Africa’s real estate investment trusts.

Accelerate Property Fund led the pack after shareholders voted overwhelmingly against the re-election of founder Michael Georgiou to the board, with more than 97% opposing the motion. The stock surged almost 18% following the decision, making it the top-performing REIT for the month.

Emira Property Fund expanded its strategic position in SA Corporate Real Estate, acquiring an additional 130 million shares to take its holding to 229.6 million shares, equivalent to 8.7% of the total shares in issue. Controlled by the iGroup, which owns just over 64% of Emira, the move underscores continued consolidation and capital recycling activity in the sector.

Fairvest announced two earnings-accretive acquisitions, namely Jozini Mall and Tugela Ferry Mall in KwaZulu-Natal, for a combined R674 million at an attractive initial yield of 10.17%. SA Corporate added to this momentum by acquiring the Parks Lifestyle Apartments at Riversands, a 1 960-unit residential complex near Steyn City, for R1.67 billion, while simultaneously disposing of Bluff Towers Shopping Centre for R544.6 million.

Meanwhile, Safari Investments unveiled plans to delist following a firm intention by Heriot REIT to acquire all remaining shares at R8 per share. The proposed deal, once approved, will see Safari become a wholly owned subsidiary of Heriot REIT, enabling a shift toward a development-led growth strategy despite reduced near-term dividends.

Across the board, results from Equites Property Fund and Spear REIT were well received by investors, reflecting improving property fundamentals and the positive impact of lower borrowing costs on distributable earnings, key drivers behind October’s strong sector-wide performance.

The SA REIT Association Chart Books are available for download here.

SA REIT Conference 2026

The SA REIT Association’s biennial conference, proudly sponsored by Nedbank Corporate and Investment Banking’s Property Finance division, takes place on 12 February 2026 at The Houghton Hotel, Johannesburg. The keynote address, “Global REIT Dynamics: Innovation, Influence and Opportunity”, will be delivered by Peter Verwer, Executive Chairman of Futurefy. The agenda will examine capital access, innovation, local government risk, policy and the renewed relevance of REITs in the real economy.

Register here.

Growthpoint’s pioneering renewable energy certificates for tenants

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Nedbank to decarbonise 26 branches with Growthpoint’s pioneering renewable energy certificates for tenants

Nedbank Group Limited has become one of the first businesses in South Africa to offset its carbon emissions by taking up Growthpoint Properties Limited’s (JSE: GRT) renewable energy certificates (RECs) in a groundbreaking initiative enabling tenants to offset electricity emissions in leased buildings.

 Nedbank leads on Scope 2 carbon emissions reduction

Setting a new benchmark for corporate decarbonisation in South Africa, Nedbank will offset its Scope 2 emissions across 26 branches located in Growthpoint-owned shopping malls and offices in five provinces — from La Lucia Mall in KwaZulu-Natal to Waterfall Mall in North West, and Woodmead Retail Park in Gauteng to Walmer Park in the Eastern Cape, as well as The Constantia Village in the Western Cape. Together, the branches span over 8,200 square metres of retail space.

Growthpoint solves the challenge of leased-property emissions for businesses

Scope 2 emissions, which stem from purchased electricity, are typically the hardest – if not impossible – for businesses to reduce in multi-tenanted leased premises without support from the landlord. Tenants can reduce their consumption but can’t control the electricity supply at these buildings, and the vast majority of South Africa’s national electricity is coal-fired.

Growthpoint’s REC initiative addresses these gaps for the first time in South Africa by certifying the clean solar power generated at its properties and offering verified RECs to tenants. At the same time, it paves the way for wider use of certified, blockchain-tracked green attributes by businesses in South Africa.

A scalable model for corporate decarbonisation

Nedbank has welcomed the solution as a major step forward on its well-established sustainability journey.

Charl de Kock, Nedbank Executive Head of Group Business Services, says that Nedbank is delighted to partner with Growthpoint in this pioneering initiative.  

 “Access to RECs through Growthpoint gives us an immediate, auditable way to reduce Scope 2 emissions for our branches in their buildings. This removes a big barrier and supports our long-term climate goals, especially where it is too complex to wheel or generate renewable electrons,” adds de Kock. 

 “Nedbank achieved a 30% energy reduction target two years ahead of schedule. In 2024, our electricity use stayed below 97,000 MWh, and renewable energy reached 10% of total consumption. We have been carbon-neutral since 2010, making us the only major bank with this track record.”

“Nedbank’s early adoption of RECs marks a pivotal shift for carbon offsetting and reporting in South Africa. Transparent carbon emission offsets are urgently needed, particularly for businesses in leased spaces, as they cannot tackle the challenge alone. Growthpoint is proud to support our tenants in decarbonising their operations,” says Werner van Antwerpen, Growthpoint Head of Corporate Advisory.

Growthpoint’s collaboration with Nedbank unlocks a new way to manage environmental risk while affirming leadership in driving global efforts toward a low-carbon economy.

Shared climate ambitions drive joint action

Nedbank and Growthpoint are naturally aligned on certified decarbonisation. Both are leaders in South Africa’s certified green building movement and catalysts for energy efficiency and renewable energy adoption. Both share ambitious climate targets: Growthpoint is aiming for carbon neutrality across its property portfolio (the largest for a REIT locally) by 2050, while Nedbank is targeting 100% of lending and investing supporting a net-zero carbon economy by the same year.

By taking these initial steps in the REC market together, Nedbank and Growthpoint are advancing their sustainability ambitions and opening the way for businesses of all sizes in South Africa to achieve credible Scope 2 emission offsets while stimulating the local green economy.

This transaction is expected to pave the way for broader integration of green attribute instruments and grow South Africa’s sustainable economy.

Growthpoint’s solar energy infrastructure

Underpinning the solution is Growthpoint’s unique renewable energy mix. The leading property company has grown one of South Africa’s largest Small Scale Embedded Generator (SSEG) renewable energy fleets and linked it to transparent certification frameworks. It has a solar fleet of 80 rooftop systems providing 61.2MWp capacity. Growthpoint plans to commission 7MWp of additional solar capacity by mid-2026.

So far, nearly half of its solar plants are already registered on the international Renewable Energy Certificate (I-REC) registry in partnership with Fuel Switch, Africa’s first blockchain-enabled REC exchange. The I-REC mechanism provides globally recognised certification for renewable energy generation and is increasingly being adopted by companies and institutions to meet sustainability targets.

e-co₂ wheeled green electricity is live

Alongside its on-site rooftop solar fleet, Growthpoint launched its wheeled renewable energy initiative, e-co₂, last month (October 2025). Supported by a landmark 195GWh power purchase agreement (PPA) with Etana Energy for a sustainable mix of renewable hydro, wind and solar electricity.

The first renewable energy generation project to come online as part of the PPA is Boston Hydroelectric Plant in Lesotho Highlands Water Scheme near Clarens, a new R390 million development by Serengeti Energy, with an operational lifetime of over 40 years. Growthpoint has acquired a 30% stake in the plant and secured exclusive access to all the approximately 30GWh of renewable electricity generated by the plant annually. The certified zero-carbon electricity from Boston Hydro is already being added to the national grid and supplying 20 Growthpoint buildings on Eskom’s direct grid and three on the City of Cape Town’s grid. This includes 10 e-co₂ office buildings in Sandton where, in addition to compounding cost-saving fixed escalations on green electricity, each unit of clean energy consumed by a tenant automatically generates a tradable digital REC for them, tracked via Fuel Switch’s blockchain-enabled platform.

A milestone for South Africa’s green economy

 “Growthpoint’s first-of-its-kind green electricity programme offers tenants a way to reduce their Scope 2 emissions and marks an important milestone in South Africa’s green energy market. It demonstrates how building owners and tenant businesses can work together to deliver real emissions reductions and build a low-carbon future,” adds van Antwerpen.

 

Redefine ends FY2025 in stronger shape

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Redefine ends FY2025 in stronger shape as confidence lifts and greylisting exit bolsters outlook

Redefine Properties Limited [JSE: RDF] has reported a solid set of results for the financial year ended 31 August 2025, marking another step in the group’s multi-year transformation journey. The diversified property group delivered a 7.8% increase in distributable income, lifted its operating profit margin by 1.1 percentage points to 76.2%, and reduced its loan-to-value (LTV) ratio to 40.6%, firmly within its target range.

Chief Executive Officer Andrew König says the results confirm that “Redefine ends the financial year in far better shape than we started it, with all key metrics trending positively.”

“We’ve seen property asset values lift by R1.9 billion in South Africa and hold steady in Poland. Our LTV ratio is also back within range. Importantly, we achieved an operating profit margin improvement against a backdrop of only moderate revenue growth, which is testament to the efficiency gains coming through the business,” König explains.

 Confidence returning as SA exits the FATF greylist

König says early signs of rising business and consumer confidence are evident in leasing activity and investor sentiment, supported by the country’s recent removal from the FATF greylist and prospects of a sovereign credit rating upgrade.

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

“Add to that the Reserve Bank’s firm inflation targeting stance and the possibility of a rating uplift next year, and you have the makings of a tangible, rising optimism. Those tailwinds, coupled with Redefine’s strengthened balance sheet, position us well to capture growth as sentiment improves.”

CFO Ntobeko Nyawo agrees that the broader macro turn is set to benefit well-capitalised corporates.

“Our balance sheet is already in a strong position; with an interest-cover ratio of 2.2 times, 83% of debt hedged, and a weighted average cost of debt reduced to 7%. That gives us flexibility to fund growth while maintaining liquidity prudence.”

 Portfolio quality and diversification underpin performance

COO Leon Kok says Redefine’s diversified portfolio again proved its resilience, with retail and industrial strength offsetting a still-muted office sector.

“Our portfolio mix really paid off this year. Retail and industrial delivered very pleasing results, offsetting the structural headwinds still facing offices,” Kok explains.

“Operating fundamentals are stabilising, with occupancies up, renewal reversions improving, and asset values across all three sectors showing year-on-year gains. Even office valuations have turned positive on a total-basis view.”

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

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

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

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

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

“Looking ahead, a swift, peaceful and conclusive local election outcome would be a meaningful catalyst for offices, particularly in Gauteng, by restoring certainty around municipal service delivery and enabling businesses to commit to space.”

 Poland adds growth momentum

Redefine’s Polish platform (EPP), whose retail platform accounts for roughly 28% of group assets, continued to deliver a strong, stable performance. EPP’s core retail portfolio maintained a 99.4% occupancy rate, while European Logistics Investment’s (ELI) logistics operations doubled distributable income contributions to R214 million thanks to rising occupancies (up to 96.8%) and higher market rentals.

“Poland enjoys GDP growth roughly three times that of South Africa and very low unemployment. That’s created a robust consumer market that continues to support our retail and logistics assets,” says König.

“The cost reduction plan implemented at EPP has strengthened operating margins, while self-storage developments under way will double our footprint in that segment. The stability and growth from Poland demonstrate why geographic diversification remains an essential buffer in our group asset portfolio.”

 Balance-sheet strength and disciplined capital management

Nyawo highlights that Redefine’s deleveraging and liquidity initiatives are yielding results.

“We’ve improved our LTV ratio from 42.3% to 40.6%, reduced debt margins in South Africa by 20 basis points, and maintained a well-laddered maturity profile with no near-term refinancing pressure. Liquidity of R6.7 billion gives us room to manoeuvre,” he says.

The group disposed of R1.1 billion of non-core assets during the period while reinvesting a similar amount in upgrades and energy-efficiency projects. Installed solar capacity rose 35% to 58.4 MWp, with a further 8.4 MWp in progress – a 50% increase since 2024.

“Capital recycling remains core to our strategy,” adds Kok. “We’re continuously repositioning and improving the portfolio rather than chasing new developments. Our active asset management focus keeps our assets relevant and enhances income resilience.”

 Sustainability and long-term value creation

“Nine of our buildings are now net-zero, and both our South African and Polish portfolios achieved strong GRESB scores of 81, reflecting our consistent ESG performance. For us, sustainability and operational resilience go hand-in-hand – they underpin portfolio quality and investor confidence,” König says.

 Outlook: disciplined optimism

König notes that while Redefine’s share price has delivered a 310% total shareholder return over five years, this recovery reflects more than market momentum – it underscores the success of a focused strategic reset.

“When COVID hit, our share price fell sharply, so part of that growth is off a low base. But what really matters is how fundamentally the business has transformed since then,” he says. “Five years ago, our strategy was scattered across multiple geographies and asset classes. Today, we’re focused, disciplined, and in control of every asset we manage. That focus has changed how Redefine looks and feels, and it shows in our performance.”

Looking ahead, Redefine expects distributable-income-per-share growth of 4 to 6% in FY2026.

“We remain committed to disciplined capital allocation for sustainable growth – improving portfolio quality, simplifying our international joint ventures, and maintaining a strong balance sheet,” says König.

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

Hyprop’s Clearwater Mall secures South Africa’s first Walmart Store

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Hyprop-owned centre brings international retail giant to West Rand, creating 80+ jobs

Clearwater Mall Secures South Africa’s First Walmart Store

Clearwater Mall, owned and managed by Hyprop Investments, will become home to South Africa’s first Walmart store, marking the American retail giant’s debut entry into the local market.

The announcement transforms Clearwater Mall’s retail offering and introduces Walmart’s distinctive “Every Day Low Prices” model to South African consumers. Unlike traditional sale-driven retail, shoppers will benefit from stable pricing across thousands of products year-round, eliminating the need to wait for promotional periods.

“Being selected as the location for South Africa’s first Walmart store demonstrates the strength of our retail offering and our commitment to the West Rand community,” said Kelly Belman, General Manager of Clearwater Mall. “The creation of more than 80 new jobs adds real economic value to our region, which makes this announcement even more meaningful.”

The store will occupy the mall’s upper level, featuring wide aisles, clear signage and bright lighting. Product categories span fresh and frozen foods, groceries, health and beauty products, clothing, baby essentials, homeware, electronics, toys and seasonal items.

Walmart’s product strategy emphasises local partnerships, with the majority of merchandise sourced from South African suppliers. Select international offerings will include the Beautiful range by actress Drew Barrymore – a collection of stylish kitchen appliances designed to bring premium quality to everyday cooking.

Public excitement has been building steadily since the announcement, with the store set to create more than 80 positions ranging from shop floor roles to management.

“The addition of Walmart is expected to increase foot traffic and create positive ripple effects for neighbouring businesses within the centre,” concluded Belman.

The Walmart Clearwater store will be located at Clearwater Mall upper level, Hendrik Potgieter Road and Christiaan de Wet Road, Strubens Valley, Roodepoort. The official opening date will be announced in the coming weeks.