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Operational performance

Distributable earnings rise as Dipula reopens its growth pipeline

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Dipula Properties (JSE: DIB) has delivered a robust set of results for the year ended 31 August 2025, showcasing sustained strategic progress and operational strength. The company’s second half performance outpaced the first half, driving a full-year increase of 5% in distributable earnings. This translated to full-year distributable earnings per share of 57.26 cents for the year

Izak Petersen, CEO of Dipula Properties, highlights that Dipula’s results reflect prudent capital allocation backed by rigorous asset management, financial and operational discipline, and the reignition of acquisitive growth.

“As a proud South African business, Dipula draws strength from the remarkable resilience of our people, who possess a distinctive talent for spotting opportunities, unlocking value and turning challenges into success, even in a tough operating environment. The Dipula team has done well to deliver strong performance with a positive set of results that further reinforce our firm foundation for future growth,” comments Petersen.

Dipula remains optimistic about its prospects, supported by a real estate sector in early recovery, fuelled by easing inflation, lower interest rates, some improvement to national political and policy stability, and a more stable electricity grid. Dipula is expecting continued growth in distributable earnings of 7% for its 2026 financial year.

Dipula Properties (formerly Dipula Income Fund) is a prominent, diversified South Africa-focused REIT that has been delivering sustainable investment returns, generating long-term value for stakeholders for 20-years, with nearly 15 of those as a listed entity. The company generates 67% of its income from retail properties defensively positioned with retail centres in townships, rural, and urban convenience locations. It also has a core portfolio of logistics and industrial assets (13% of income), office assets (16%), and a small non-core residential property portfolio (4%). Dipula is invested across South Africa, but its portfolio is predominantly in Gauteng.

Supported by improved property fundamentals and Dipula’s proactive asset management, the property portfolio increased in like-for-like value by 6% to R10.8 billion, and 10% for retail, buoyed by higher income prospects and supporting a 7.5% rise in net asset value. Dipula’s revenue, excluding straight-lining, increased 4% to R1.517 billion. Net property income rose 3.0%.

Cost control continues to be a management priority, and the total cost-to-income ratio of 43.2% (FY24: 42.6%) reflected a marginal increase due to inflation-driven property expense increases and the effect of lower office rental renewals achieved the previous year. Demonstrating continued cost discipline at corporate level, the administrative cost-to-income remained stable at below 4%.

Operational highlights included significant leasing activity, with retail portfolio vacancies reducing to 5%, even though total portfolio vacancies edged up slightly from 7.5% to 8.5% during the year, mainly due to short-term dynamics in highly lettable properties in the office and industrial portfolios.

Dipula achieved a weighted average positive renewal rental rate across the portfolio of 0.6%, a significant improvement over the -9.7% for FY24. New and renewed leases concluded during the period amounted to R801 million, securing sustainable income streams.

Discussions are currently in advance stages for Dipula’s clearly telegraphed intention to sell its affordable and conveniently located residential rental units, which currently represent 4% of income and showed reduced vacancies from 12% to 6% during the year. The planned disposal will see Dipula re-allocate capital to the retail and industrial sectors that are core to its business.

Driving its active capital recycling, Dipula disposed of R200 million of non-core properties during the year, substantially higher than R37 million of the prior financial year. Proceeds contributed to repaying debt and funding value-enhancing asset management strategies, quality-improving acquisitions and sustainability initiatives.

Dipula invested R214 million in refurbishments and redevelopments designed to drive income growth, which is a 37% increase over the prior year. A further R170 million is planned for the 2026 financial year, enhancing already successful core assets.

Returning to acquisitive growth this year, Dipula finalised five strategic acquisition agreements in August 2025 totalling approximately R700 million, at a total average weighted yield of 10%. The largest of these was the R480 million purchase of Protea Gardens Mall in Soweto, a 24,000sqm community shopping centre. This asset is an excellent strategic fit for Dipula’s strategy, offering embedded growth and value creation potential, supported by a strong tenant base with over 70% national retailers and a growing consumer market. Together with two additional acquisitions to deepen the company’s footprint in key, proven markets, these retail investments underscore Dipula’s commitment to community upliftment by providing accessible, everyday shopping experiences.

In line with Dipula’s capital allocation strategy focused on high-quality mid-sized logistics and industrial assets, a core component of its growth plan, Dipula also secured two industrial properties with strong tenant profiles. It agreed to acquire a newly developed, state-of-the-art distribution centre of over 16,000sqm in Klerksdorp, leased long-term to blue-chip multinational Bayer. Additionally, Airborne Industrial Park, a fully let multi-tenant complex of 6,964sqm located near OR Tambo International Airport, transferred ownership in August 2025.

The transactions are also being funded, in part, by Dipula’s oversubscribed September 2025 equity raise of R550 million.

Dipula integrates ESG principles into every aspect of its operations, driving transparency, reducing environmental impact, and fostering community and social value through sustainable investments and stakeholder engagement. Key initiatives this year included expanding rooftop solar capacity, enhancing energy efficiency, waste and water management, and supporting employee development and community projects.

The REIT invested R54 million in solar PV installations during the year, bringing its installed solar capacity to approximately 6MWp. An additional 10MWp of new solar projects are slated for completion in the first quarter of 2026. While there’s still progress to be made, the results show that Dipula has started its sustainability journey in earnest. Emissions avoidance increased by 240% compared to the previous year. Meanwhile, the share of green energy consumed in its portfolio more than doubled, rising from 2% to 5%.

“Dipula’s capital allocation will see us staying true to our strategy by growing and enhancing the quality of properties in our retail portfolio, increasing exposure to logistics and industrial properties, and advancing our sustainability programmes. We are actively evaluating a strategic pipeline of promising growth opportunities within this core focus,” says Petersen.

Dipula benefits from a strong balance sheet and has maintained prudent debt levels. Gearing reduced to 34.9% compared to 35.7%, and a steady ICR of 2.8 times at year end reflects a consistently well-managed balance sheet. Post year-end gearing had reduced to 29%.

Late last week (5 November 2025), Dipula was named the number one company in the prestigious Sunday Times Top 100 Companies Awards, purely on merit assessed through rigorous financial performance criteria that identify those companies earning the most for shareholders. Eligible companies must be JSE-listed with minimum market capitalisation of R5 billion as at 31 August 2025, trade at least R20 million in volume, and have at least five years of trading history. Rankings are determined by the compound annual growth rate (CAGR) of a hypothetical R10,000 initial investment at the closing share price on 31 August 2020, held for five years to 31 August 2025.

Dipula proudly achieved a compound annual growth rate of 57%, delivering a total return of 854%. This means R10,000 invested in Dipula in September 2020 was worth R95,424 as at 31 August 2025.

Looking ahead, Petersen notes the South African real estate sector has seen meaningful improvement recently with more to come, and this could accelerate should there be improvements to the persistent local government inefficiencies that are posing material risks and structural constraints to sector growth.

“We remain optimistic about South Africa and the property sector’s outlook, while being realistic about the challenges we face. Dipula will continue focusing on growing our presence in defensive retail and industrial assets through strategic capital allocation, disciplined operations and active hands-on management,” says Petersen.

 

Stor-Age grows portfolio to 109 properties

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STOR-AGE GROWS PORTFOLIO TO 109 PROPERTIES AND DELIVERS STRONG OPERATIONAL AND FINANCIAL UPDATE

HIGHLIGHTS

  • Interim dividend of 59.74 cents per share, up 4.5% year-on-year
  • Distributable income of 66.37 cents per share, up 4.5% year-on-year
  • Rental income up 8.7%, same-store occupancy up 3 500m² and net investment property value up 6.4% to R12.2 billion
  • Closing occupancy 90.6% (92.1% SA; 85.2% UK)
  • JV portfolio occupancy up 15 800m² (SA 9 300m²; UK 6 500m²), including same-store growth of 9 200m² (SA 4 700m²; UK 4 500m²)
  • SA REIT NAV per share up 6.9% year-on-year to R17.25
  • Loan-to-value ratio of 30.9% and 78.8% of net debt subject to interest rate hedging
  • Property portfolio comprises 1091 trading stores (SA 63; UK 46), with the total portfolio including developments exceeding 700 000m² GLA
  • Development pipeline of 78 000m² GLA, with 19 projects at various stages of planning and completion
  • Acquired Lock Up Storage in KZN in October 2025 for R95 million, with 11 400m² GLA across two properties
  • Construction commenced at Bramley (Johannesburg) in June 2025 at a total development cost of R91 million
  • Development scheduled to begin in 2026 of new SA flagship property at De Waterkant (Cape Town foreshore) at a total development cost of R155 million (excl. land)
  • Two new properties secured for development in Cape Town
  • New Storage King Exeter management contract secured in September 2025
  • Development of the new Hines-owned Storage King Chelmsford (South East England) commenced (7 000m² GLA) – third-party developer-operator model
  • 2030 Property Strategy targeting 90 properties in SA and 70 properties in the UK
  • Guidance reaffirmed for FY26 distributable income per share to be approximately 5% to 6% higher year-on-year

JSE REIT Stor-Age, South Africa’s leading and largest self-storage property fund, maintained its resilient financial performance for the twelve months to September 2025. The Group continues to strengthen its market-leading position and maintain its track record of consistent earnings growth.

November 2025 marked the ten-year anniversary since Stor-Age listed on the JSE, where the Company became the first self-storage REIT to be listed on an emerging market exchange globally and the first, and still only, of the real estate “alternatives” to be listed on the local stock exchange. The past decade has been characterised by a consistently strong operational and financial performance, and substantial portfolio expansion, reflecting the Group’s disciplined and highly successful execution of its multi-year strategic growth plans.

Stor-Age CEO Gavin Lucas comments, “During the past decade Stor-Age has consistently delivered on its strategic objectives, expanding the portfolio across South Africa and the UK, and delivering consistent earnings growth. Since the listing in 2015, we have continued to outperform both the JSE All Share Index (ALSI) and the JSE All Property Index (ALPI), expanding our portfolio from a value of R1.3 billion to R13.6 billion and the number of properties from 24 to 109.

Assuming R100 was invested on the date of our listing in November 2015 and provided that the full pre-tax dividend was reinvested, an investment in Stor-Age would be worth R360.88 at the end of October 2025. The same investment in the ALSI and in the ALPI would be worth R303.27 and R113.15 respectively. Over the past decade that we’ve been publicly traded, that translates into a significant 173% outperformance of our sector benchmark, the ALPI. A pleasing result and one that we are proud of.”

For the six months to 30 September 2025, Stor-Age delivered another strong trading performance, achieving revenue and occupancy growth, with the Group growing its distributable income per share of 65.87 cents 4.5% compared to the prior year. Executing the Company’s latest five-year property strategy to 2030, Stor-Age expanded its portfolio to 109 properties (SA: 63; UK 46) and increased the combined value of the portfolio, including properties managed in JV partnerships, to R18.7 billion.

The South African portfolio remains operationally strong, delivering year-on-year growth of 9.8% in rental income and 10.6% in net property operating income on a same-store basis.

While trading conditions in the UK were more challenging during the period, the Company continued to deliverer on all key metrics relative to its UK listed peers. During the period, same-store rental income increased by 2.5%, with occupancy closing at 85.2%, and increasing by 1 400m² compared to 31 March 2025.

Since the JSE listing in 2015, through a combination of acquisitions and developments, the South African portfolio has grown at an average of 3.4 new trading properties per year and the UK portfolio four since Stor-Age’s strategic market entry into the UK in 2017. Combined, it translates into an attractive overall portfolio growth rate of an average of more than seven properties per annum since 2017. The Group’s 2030 property strategy, the fourth iteration since 2010, aims to expand the South African portfolio to 90 properties and the UK portfolio to 70 properties.

Stor-Age continues to make excellent progress in executing its UK growth strategy. In June 2025 the Company opened a new £25 million property in Acton, West London in its JV with Moorfield. Following Stor-Age entering into a third-party management agreement with Hines in FY25 to manage the acquisition of a three-property portfolio in the UK, the two companies are now working closely on four additional development projects. The first of these properties, located in Chelmford, has commenced development with the store scheduled to open in Q2 FY27. In September 2025, the Company also entered into a third-party management agreement with Time Investments, a specialist investment manager focused on asset-backed, income-producing investments, to manage a property acquired in Exeter, Devon.

In South Africa, the Group made further progress with several acquisitions and new developments, further cementing its sector-leading position in the country. The latest addition to the portfolio was in October 2025, with the Company acquiring two properties operated by Lock Up Storage in KwaZulu-Natal for R95 million. Located in Pinetown and New Germany, the two properties will expand the portfolio by 11 400m2.

In June 2025, construction commenced on a new property located in Bramley, Johannesburg. The development, situated alongside the busy M1 highway, will comprise 5 600m2 GLA with a total development cost of R91 million. In Cape Town, the Company announced that it plans to imminently break ground on a new SA flagship store, a 6 500m2 GLA property in De Waterkant on the foreshore, and located in close proximity to the V&A Waterfront. At a development cost of R155 million excluding land costs, it will be the most expensive self storage property ever developed in South Africa, as well as the tallest at 13 storeys. Construction at the property is expected to begin in early 2026.

Concludes Lucas, “⁠Our South African portfolio continues to deliver strong growth momentum supported by improving macroeconomic conditions, including a more favourable inflation outlook, a stabilising political environment and the prospect of interest rate cuts. These trends underpin a positive outlook for continued performance in the second half of the year. In the UK, trading conditions have been more challenging across the sector than anticipated. We remain focused on driving operational efficiencies, disciplined cost management and further growth of our third-party management platform to enhance long-term resilience and scale. Looking ahead, Stor-Age continues to focus on growth opportunities in both markets while maintaining a conservative capital structure.”

Stor-Age reaffirmed its FY26 full year forecast of distributable income per share growth of 5 – 6%.

The share closed yesterday at R17.55.

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 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.

Dipula reports strong interim results as it marks its 20th year

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Dipula Properties (JSE: DIB) has reported a strong set of interim results for the six months ended 29 February 2025, demonstrating continued strategic and operational momentum in a persistently challenging macroeconomic environment. The property portfolio increased in value by 5% to R10.3 billion, supporting a 6% rise in net asset value. Dipula’s distributable earnings per share (DPS) increased 4.2% for the half year, on track with full year guidance of 4.0% to 6.0%.

Dipula Properties (formerly Dipula Income Fund) is a prominent, diversified South Africa-focused REIT with a long-standing track record of sustainable value creation. As a black-managed property company celebrating two decades of operation this month, and nearly 15 of those as a listed entity, Dipula exemplifies a rare blend of resilience, transformation and consistent delivery that continues to contribute to the real estate sector and South Africa’s broader economic landscape.

The Dipula portfolio includes 161 retail, office, industrial and residential properties across South Africa, predominantly in Gauteng. The portfolio is defensively positioned with retail centres in townships, rural, and urban convenience locations contribute 67% of portfolio income.

Izak Petersen, CEO of Dipula Properties, comments, “Dipula’s operational performance reflects solid delivery and a strongly defensive position in persistently challenging conditions. However, we have felt the impact of higher prevailing interest rates and hedging costs relative to expiring hedge instruments. Encouragingly, we are seeing signs of recovery in the office sector and continued stability in our retail and industrial portfolios, with sustainability initiatives expected to support long-term performance.

Dipula’s revenue for the six months was similar to the prior period at R760 million. Net property income rose 3.0%, constrained by property related expenses, which grew 6.0%, mainly driven by municipal tariff increases. However, cost control remains a management priority, and the total cost-to-income ratio rose marginally to 43.5% (FY24: 42.6%), driven by improved recoveries and Dipula’s solar energy roll-out. The administrative cost-to-income was unchanged at 4%.

Operational highlights included significant leasing activity, contributing to a reduction in overall portfolio vacancies from 8% to 7% during the period. Dipula additionally achieved a weighted average positive renewal rental rate across the portfolio, underpinned by positive rates across the portfolio. The office portfolio recorded a renewal rate of 8.3% followed by industrial at 6.2% and retail at 2.4%. New and renewed leases concluded during the period amounted to R309 million, securing sustainable income streams.

Tenant retention of 79% is lower than in recent periods as Dipula has adopted stricter tenant criteria to improve tenant quality in its industrial portfolio, specifically for mini-units where there is high tenant turnover. Even with this change, Dipula’s industrial vacancies still decreased. Industrial and logistics assets deliver 13% of Dipula’s rental income and with a vacancy of just 4%, this segment remains stable and sought-after.

Dipula’s retail assets remain core to its performance, offering accessible and well-positioned spaces across diverse communities. The retail portfolio reported steady vacancies at 6%.

Offices comprise 16% of Dipula’s income, offering adaptable, well-situated workspace. The office vacancy rate ended the period at notably lower at 19%, down from 23% in the prior interim period, showing clearer signs of recovery starting. “The office improvement is refreshing, however there is still some way to go, and the Johannesburg office market remains oversupplied and highly competitive.”

Dipula has telegraphed to the market that it intends to sell its affordable and conveniently located residential rental units, which currently represent 4% of income. This is to re-allocate capital to the retail and industrial sectors that are core to its business. This portfolio showed a reduced vacancy rate from 10% to 9% over the six months.

Dipula continues to implement value-enhancing asset management strategies. It invested R117 million in refurbishments and redevelopments. Nearly R70 million of this was for income-generating projects, including solar PV, with the remainder allocated to defensive projects. A portion of the proceeds from R125 million in disposals, achieved at a 4% premium to book value, contributed to funding these projects together. While no acquisitions were completed during the period, Dipula has a strategic pipeline of growth opportunities.

“We’re firmly committed to future-proofing our portfolio,” says Petersen. “We are assessing some interesting opportunities which fall within our core focus, a few of which we hope to close in the short-term. Dipula’s installed solar capacity will more than double to approximately 16MW after the instillation of an additional 9MW of new solar projects to be rolled out during this calendar year.”

Dipula benefits from a strong balance sheet and has maintained prudent debt levels. Gearing was stable, at 36.3% compared to 36.1%, and a steady ICR of 2.8 times at the end of the period reflect a consistently well-managed balance sheet. R400 million in undrawn facilities provide additional liquidity.

Commenting of the operating environment in the second half of Dipula’s financial year, Petersen notes that global uncertainty has intensified amid shifting US trade policies and ongoing tariff disputes, which are expected to place upward pressure on inflation and interest rates. Domestically, South Africa faces persistent fiscal, economic and service delivery challenges, with subdued confidence and higher than anticipated interest rates.

“At Dipula, we remain focused on executing our strategic priorities: driving operational efficiency, optimising our tenant base and recycling capital to reinforce balance sheet resilience.” says Petersen.