Emira declared a cash-backed final dividend of 64.40cps, 3.2% higher than the prior half year. Its net asset value per share increased 1.4% over the six-month period that saw the company make measurable progress on each of its key objectives and deliver improved operational metrics. The half-year results indicate that Emira continues delivering long-term value for all stakeholders.

James Day, CEO of Emira Property Fund, credits the positive results to the steady outperformance of Emira’s South African assets, supported by a stable and gradually improving environment, driven by steady interest rates, reduced load shedding and moderate inflation. Additionally, its US portfolio remains robust, and Emira’s strong entry into the Polish real estate market is yielding returns.

Emira is a South African Real Estate Investment Trust (REIT) with a diversified portfolio across sectors and geographies. In South Africa, it holds direct commercial – retail, industrial, office – and residential property portfolios. It also recently acquired stake in listed REIT SA Corporate Real Estate. Internationally, Emira invests indirectly through equity interests alongside specialist co-investors. In the US, it holds influential stakes, ranging between 45% and 49%, in 10 dominant, grocery-anchored centres with US-based partner The Rainier Group. In Poland, Emira has a 45% equity stake in DL Invest, a Luxembourg-headquartered developer and long-term investor in industrial and logistics centres, mixed-use offices, and retail parks located across Poland.

“Our diversified portfolio of direct and indirect property investments supports resilient returns across market cycles. Emira continues to be well-capitalised with a prudently managed financial position, and our capital recycling strategy continues to strengthen the balance sheet,” says Day.

Interest cover improved to 2.7 times and the loan-to-value ratio improved to 35.6% from 36.3% over the six months. In October 2025, GCR reaffirmed Emira’s long-term and short-term credit ratings of A(ZA) and A1(ZA) respectively, with a stable outlook, reflecting a diversified funder base and trusted funding relationships.

Improved South African portfolio metrics

 Emira’s South African direct property portfolio comprises 56 properties, valued at R9.3bn. The portfolio’s fair market value, adjusted for disposals, increased 1.2%. The commercial portfolio of 41 assets is balanced across urban retail (50%), office (23%) and industrial (14%), driven by improved performance metrics across all sectors. The residential portfolio (13%) comprises 2,203 units across 15 properties owned by Transcend Residential Property Fund, a wholly owned subsidiary focused on quality, value-oriented suburban rental units.

“Commercial portfolio valuations were positively influenced by improved sentiment in the South African market and more resilient underlying fundamentals,” notes Day.

 Commercial vacancies decreased to 3.8% from 6.4% over the six months mainly due to a single industrial tenant reoccupying its space. Vacancies in all sectors were well below national sector benchmarks, signalling sustained tenant demand for Emira’s properties and effective leasing strategies. Office vacancies in the primarily P- and A-grade portfolio continued showing improvement, closing at 8.0%, down from 8.4%. Retail vacancies remained low, although slightly up at 4.8% from 4.2%, while in the high-demand industrial portfolio, vacancies reduced to 0.4% from 7.9%. Weighted average rental reversions improved in all sectors and rose into positive territory, up by 0.6%, in the retail portfolio.

Residential portfolio occupancies were higher at 98.3%, excluding units for sale, ahead of the Rode national average of 94.4%, with solid underlying demand supporting performance and contributing to consistent, modest rental growth.

Growth-backed capital recycling

 Emira’s capital recycling strategy includes selectively divesting non-core or mature assets, which creates liquidity to invest in high-yielding, value-accretive opportunities. During the six months, Emira disposed of a non-core industrial property and 1,144 residential units for total proceeds of R746.3m. A further R405.7m of properties were under sale agreements when the period closed.

Emira allocated R33.4m to targeted upgrades in its commercial portfolio and R10m in the residential portfolio. “These investments protect and prolong asset value, maintaining quality standards, occupancy appeal and compliance,” notes Day.

Deploying liquidity achieved through its disposal programme, through on-market transactions Emira acquired a 6.4% equity interest in SA Corporate during the period for R497.1m, which at 30 September 2025 was valued at R523.7m based on the share’s closing spot rate.

Emira’s equity stake in SA Corporate contributed R13.0m to the period’s distributable income.

“The SA Corporate investment aligns with Emira’s strategy of investing in quality, undervalued assets. It’s well diversified and defensive property portfolio, anchored on resilient retail and residential assets, offers strong fundamentals and reliable cash flows,” comments Day. Emira has since invested a further R187.9m in SA Corporate, taking its total equity interest to 8.7%.

International strategy reinforced by performance in the US and Poland

 International investments are 37% of Emira’s portfolio, by value, with 14% in the US and 23% in Poland.

Emira’s US portfolio opened the period with 11 assets of R2.7bn (USD145.4m). After the successful sale of University Town Centre following an approach by a co-investor, creating the opportunity to unlock liquidity at a small premium to book value, the US portfolio closed the period with 10 investments totalling R2.2bn (USD129.6m). Two properties, Moore Plaza and Dawson Marketplace, are under contracts for sale. The US portfolio held its value, which is expected to remain steady for the full year.

The US investments continued to perform well supported by sound property fundamentals and a high-quality tenant base. Strong leasing activity and consistent tenant demand improved vacancy levels to 2.8% from 4.6%. New leases were signed at an average lease duration of 7.0 years, extending the portfolio’s weighted average lease expiry to 4.6 years from 4.2 years. Rental reversions remained slightly positive at 0.4%.

Emira’s US equity investments contributed R89.8m to its half-year distributable income.

In August 2024, Emira began its investment in DL Invest and it held its full 45% stake in DL Invest for the entire period. “We’re encouraged by DL Invest’s performance since our investment, especially its strong execution of strategy. Emira’s investment has laid a solid foundation for the strategic, long-term collaborative partnership with DL Invest, which also positions Emira to access potential future opportunities in Poland,” Day notes.

DL invest has established a strong position in the Polish market through its integrated business model, diversified portfolio and consistent financial performance. Its portfolio of 39 income-generating properties was valued at EUR687.5m at 30 September 2025. The portfolio comprises 67% industrial and logistics, 22% mixed-use/office and 11% retail parks. It maintained a total vacancy of 3.0% and a stable weighted average lease expiry of 5.2 years. DL Invest’s land and properties under development had a combined carrying value of EUR189.8m, providing a growth pipeline. During the period, DL Group successfully listed EUR350m Eurobond on the Luxembourg Stock Exchange, following a successful issuance oversubscribed by institutional investors.

Emira earned EUR3.62 million (R74.9m at the average EUR/ZAR exchange rate) from DL Invest for the period, which was added to distributable income.

Long-term value from strategic capital deployment

“We will continue to direct recycled capital towards meaningful, value-accretive opportunities to grow value for all shareholders,” concludes Day.

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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.

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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 000m^² 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.

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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.”

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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.”

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Fairvest Limited announced more details of its R486 million strategic investment in Onepath Investments, an owner of digital infrastructure assets. Fairvest intends to utilise this investment to enhance its traditional retail properties synergistically, underscoring its credentials as an innovator and incubator for emerging property trends.

 Fairvest CEO, Darren Wilder, said: “Globally, the returns from digital assets underpin some of the best-performing REITs, benefiting from growing structural demand that is not tied to economic cycles. In addition to attractive direct returns, Fairvest’s investment provides us with opportunities to enhance the lives of communities surrounding our retail centres, opens up new areas for expansion, and allows us to engage more deeply with communities, collect data, improve our marketing efforts, and drive foot traffic to our centres.”

South Africa continues to experience an enormous increase in demand for reliable and fast internet. Fibre is the best technology for consumers to access the internet, offering a combination of speed, reliability, and low latency. However, the cost of infrastructure has historically been a limiting factor. There are an estimated 10 to 15 million homes in South African townships, with households earning less than R5 000 per month, whose internet needs are currently inadequately serviced mainly by mobile operators through more expensive and less effective connectivity.

Fairvest’s investment in Onepath Investments (OPI) has funded the acquisition of fibre and related infrastructure leased to fibertime, a proven fibre network operator and internet service provider, catering specifically to South Africa’s township market. fibertime’s pay-as-you-go model offers fast fibre internet (uncapped 100Mbps) for only R5 per device per 24 hours and includes free equipment and installation.  Through this investment, Fairvest, through OPI, has enabled fibertime to provide fast, uncapped pay-as-you-go internet connectivity to lower LSM customers and communities, helping to unlock the untapped potential of South Africa’s township fibre market. fibertime aims to reduce costs, enabling more people to access the internet, and in the process, help entrepreneurs build large businesses that can create job opportunities for thousands of young people in townships. In the last three years, fibertime has successfully rolled out affordable fibre to more than 200 000 homes in townships and low-income areas nationwide in South Africa.

Fairvest CEO, Darren Wilder, said: “The investment aligns closely with Fairvest’s core retail strategy and target market of serving low-income, high-density communities in under-serviced areas. Serving communities with cost-effective digital access and data solutions is transformative in improving educational and employment outcomes, fostering entrepreneurship, creating business opportunities, and reducing income inequality. As these communities do better, it also enhances Fairvest’s core retail market.”

 Fairvest’s announcement follows its pre-close presentation last week, where the Company lifted its guidance for annual distribution growth per B share to above 10%. Previously, the Company guided for distribution growth of 8%-10%. The increase is due to a substantial improvement in property fundamentals with positive rental reversions of 5.0% (Mar ‘25: 4.3%), and a weighted average built-in escalation of 6.7% (Mar ‘25: 6.6%). The Retail portfolio, representing 71% of the total portfolio by revenue, has demonstrated markedly lower vacancy, a strong improvement in rental reversions, and an increased WALE. The Office portfolio (18% of the total portfolio by revenue) was resilient, continuing to reduce vacancy and increase average gross rentals, while maintaining built-in escalations at 7%. Office WALE reduced modestly. Industrial assets comprise 11% of the total portfolio. Vacancy increased in the industrial portfolio, primarily due to one property; however, the portfolio demonstrated notable improvements in rental reversion, average gross rental per square metre, and built-in escalations. Fairvest’s loan-to-value is expected to be below 30.0% by year-end.

Wilder ended: “Fairvest’s traditional portfolio is positioned for solid growth. Additionally, OPI’s digital infrastructure business is well-positioned for rapid expansion. fibertime’s potential target market in South Africa is enormous, and to date, all acquisitions have outperformed the projected take-up levels. We are excited about this investment, which has such potential, and expect its strong performance to continue.”

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Growthpoint Properties Limited (JSE: GRT) delivered results exceeding the top-end of its guidance for the financial year ended 30 June 2025, reporting distributable income per share (DIPS) of 146.3cps, up 3.1% from the prior financial year, and a total dividend per share (DPS) of 124.3cps, an increase of 6.1%.

Growthpoint’s return to growth comes a full year earlier than initially expected.

Growthpoint entered the 2025 financial year (FY25) forecasting an earnings contraction of -2.0% to -5.0%. Better-than-expected half-year results, driven mainly by improved performance from the South African portfolio, better finance cost expectations and outperformance from the V&A Waterfront, marked a turnaround and Growthpoint upgraded its guidance to positive growth of between 1.0% and 3.0%. A further upgrade in June 2025 tightened the guidance range at the upper end of between 2.0% and 3.0%.

The same factors contributing to Growthpoint’s half-year outperformance, cemented its positive performance in the second half.

Norbert Sasse, Group CEO of Growthpoint Properties, comments, “This strong set of results shows that Growthpoint has done well to exceed expectations and deliver solid earnings growth while executing our strategic priorities. The progress made in further strengthening our SA portfolio is evident in its improved performance. The V&A Waterfront once again delivered stand-out results. Streamlining our international investments has simplified our capital structure and equity story, and disciplined treasury management kept finance costs below expectations.”

 The watershed year also resulted in Growthpoint upgrading its payout ratio to 87.5% for the second half. Together with the 82.5% payout ratio for the first half, Growthpoint’s payout ratio for the full year is 85.0%.

Shifting its outlook from cautious to optimistic, Growthpoint will maintain its payout ratio at 87.5% for the 2026 financial year (FY26). The reset to the higher payout ratio reflects Growthpoint’s strong balance sheet, effective strategy execution and disciplined capital management leading to positive momentum in SA property values and operations and a simpler international investment capital structure. Growthpoint’s strong position is further reinforced by the tailwinds of decreasing interest rates and a growth phase taking shape in the property cycle.

FINANCIAL PERFORMANCE

 Growthpoint delivered rewarding financial results in the face of ongoing external pressures. Total property assets stand at R155.8bn compared to R166.2bn for the 2024 financial year (FY24), with strategic disposals to optimise the international investment portfolio being the main factor contributing to the 6.3% decrease. The Group SA REIT loan-to-value (LTV) ratio decreased to a conservative 40.1% from 42.3% at FY24, while the interest cover ratio (ICR) improved to 2.5x. Growthpoint retains strong liquidity, with R0.9bn in cash and R4.7bn in unutilised committed debt facilities and enjoys excellent access to funding at attractive margins.

Finance costs in SA decreased, stemming from lower average borrowings compared to FY24 and a lower weighted average cost of debt in FY25 of 8.9% (FY24: 9.6%), and 6.9% (FY24: 7.2%) when including foreign exchange instruments.

“LTV ratios, linked to valuations, have now stabilised. Growthpoint remains committed to balance sheet resilience and liquidity for the long term, underpinning our continuing access to competitive funding and maintaining financial flexibility,” notes Sasse.

STRATEGIC PRIORITIES

 Growthpoint has a diversified portfolio and defensive income streams. It successfully advanced its strategic initiatives to improve the quality of its SA portfolio including driving sustainability initiatives towards the goal of carbon neutrality by 2050, and to optimise its international investments.

Improving the quality of the directly held SA portfolio of logistics and industrial, office and retail properties, Growthpoint is focused on disposals, developments and targeted investments.

Over the past decade, it has trimmed asset numbers in the portfolio from 471 to 328, reducing gross lettable area by 18.9%. While the property count has reduced, the core SA portfolio has been significantly improved with quality income streams. In FY25, Growthpoint disposed of 25 non-core (including trading and development) properties for R2.5bn at a R37.9m profit to book value and invested R1.6bn in value-adding development and capital expenditure.

As a result of its portfolio enhancement over the past decade (from 1 July 2016), Growthpoint has strategically grown its logistics and industrial assets from 15.0% to 20.0% of the total SA portfolio value. To achieve this, it reduced property numbers from 247 properties totalling 2.2m square metres gross lettable area (GLA) to 143 properties just shy of 1.8m square metres, selling primarily older industrial and manufacturing facilities while increasing its exposure to modern logistics warehouses, which are now nearly half of the portfolio, and to better performing nodes.

It also reduced its office exposure from 46.0% to 40.0% of portfolio value, streamlining the portfolio from 186 properties to 146 or 1.6m square metres of GLA, by reducing exposure to B‑ and C‑grade assets and those in non-core business nodes and aligning its office assets more closely with modern business aspirations and operational needs.

Retail property assets remained a steady 39.0% of the total portfolio value, but the number of retail properties has nearly halved from 61 to 32 and now spans 1.1m square metres of GLA. The shift has seen Growthpoint exiting non‑core retail in declining nodes and central business districts, and smaller, niche segments such as motor dealerships. At the same time, extensive redevelopments and upgrades at all its long-hold shopping centres have resulted in a more focused, modern and relevant retail portfolio.

Optimising its international investments, Growthpoint simplified and enhanced its capital structure and equity story by disposing of its entire stake in C&R to NewRiver REIT (NRR) in December 2024, receiving R1.16bn cash and a 14.2% stake in NRR, using proceeds to reduce debt. Post-year-end, Growthpoint disposed of its entire NRR stake at a market premium price of 75.0pps raising gross sale proceeds of R1.3bn thereby exiting its investment in the UK while bolstering its balance sheet and liquidity position.

Growthpoint continues to evaluate options to maximise value from its 29.6% stake in Globalworth Real Estate Investments (GWI), where it is supporting value-unlock initiatives. Progress is being made with constructive discussions amongst the shareholders in respect of the future strategy for the company.

The 63.6% stake in Growthpoint Properties Australia (GOZ) remains core.

Growthpoint owns 15.7% of Lango Real Estate Limited (Lango) which internalised its asset management function and was redomiciled to the UK during the year. Growthpoint now classifies its investment in Lango as an international investment, and no longer as part of Growthpoint Investment Partners (GIP).

SOUTH AFRICAN PORTFOLIO

 In SA, Growthpoint owns and manages a R66.7bn diversified core portfolio of retail, office, logistics and industrial, and trading and development properties, representing 50.1% of Growthpoint’s total asset book value. This portfolio contributed 51.2% of DIPS.

Rental renewal growth improved materially while vacancies reduced moderately, and like-for-like net property income (NPI) grew at 5.9%. Arrears remain firmly in check. Together, these improving metrics signal positive momentum, and all three of the portfolios are showing like‑for‑like growth. The SA balance sheet is robust, with conservative leverage at 34.5% (FY24: 35.4%) providing capacity to grow decisively.

The SA portfolio value increased 2.2% or R1.4bn, driven by disciplined capital recycling with proceeds from its R2.5bn in assets sales (R2.7bn including R120.0m for Fountains View sold to Growthpoint Student Accommodation Holdings) fuelling reinvestment and targeted development to improve the portfolio quality.

The office portfolio delivered the most pronounced improvement in the SA portfolio, achieving a meaningful turnaround in like-for-like NPI from -1.0% to +6.8%, driven by steady letting and disciplined cost and recovery management. Vacancies reduced to 14.6% with a sharp improvement in rental renewal growth from -14.8% to -3.2%, and over half of leases were signed at equal or higher rentals. For the second year, the office portfolio printed positive valuation growth of 1.9%.

While oversupply persists in the broader office market, Growthpoint’s results signal a clear positive trend and more improvement ahead, although potentially uneven as significant offices leases were renewed post year-end with negative reversions which will have an impact on the sector’s FY26 renewal growth rate. Growthpoint curates its office portfolio to accommodate modern businesses and concentrates its assets in high-demand areas. It completed the Longkloof mixed-use precinct development in Cape Town, including the Canopy by Hilton hotel. Growthpoint’s net-zero carbon redevelopment at 36 Hans Strydom for Ninety One on a 15-year lease, is well progressed and set for completion later this year.

 The logistics and industrial portfolio delivered the strongest performance. Vacancies reduced and were contained to only a few properties. The two vacancies at new speculative developments at year-end are now fully let. Encouraging demand signals vacancies are likely to decrease even further. Like-for-like NPI increased 5.5% and the portfolio value, which remains conservative, grew by 3.1%. Rental escalations, both in-force and on renewal, are trending upwards, with 59.0% of new and renewed leases signed at the same or higher rentals. High-quality developments have strengthened the portfolio, including new units at Centralpoint and the second phase of Arterial Industrial Estate.

With fewer properties of better quality, nearly half of which are logistics and warehouse properties, this portfolio has evolved into a more focused, higher-performing selection of assets. The portfolio metamorphosis is set to continue, with a strong pipeline of demand-aligned speculative developments.

The retail portfolio delivered a solid performance, marked by like-for-like NPI growth of 5.3% and consistently low core vacancies of 4.4%. Portfolio value increased 2.2%, supported by value-adding upgrades improving the portfolio quality through expansions, redevelopments, tenant mix enhancements, consumer-focused updates and solar installations, as part of the ongoing portfolio repositioning supported by recycling capital. These highly targeted asset management interventions are driving rental upside.

Retail fundamentals in the portfolio continued to improve, with footfall growing and trading density increasing at 4.8%, outperforming the Clur benchmark. Community centres led annual trading density growth by type (7.6%) while Western Cape shopping centres outperformed by region (5.3%). Top-performing retail categories for trading density growth included non-discretionary food (8.2%), department stores (6.8%) and homeware, furniture, and interiors (7.0%).

SA trading and development is delivered by the in-house Growthpoint Trading & Development division, which creates value through internal delivery of new developments for Growthpoint’s balance sheet and has an external mandate to earn third-party development fees and trading profits. This year it concentrated on industrial and retail developments that strengthen long-term portfolio quality while third-party projects played a smaller role. The division earned R51.6m (FY24: R42.2m) of trading profits and R3.1m (FY24: R25.4m) of NPI, but no development fees (FY24: R9.8m). FY26 represents a new cycle of third-party developments commencing when the landmark Olympus Sandton residential towers, which is being undertaken in partnership with Tricolt within Growthpoint’s Sandton Summit mixed-use precinct, breaks ground later this month.

Sustainability is integrated across Growthpoint’s business. As an innovator in this space, Growthpoint is making measurable progress against its goal to achieve net-zero carbon emissions across its portfolio by 2050.

Scaling practical and smart solutions for energy saving while expanding renewable energy generation, Growthpoint has cumulatively spent R1bn on installed solar, with 80 plants and a PV capacity of 61.2MWp placing it on par with a commercial-scale renewable utility.

Growthpoint’s innovative e-co₂ solution will deliver certified green electricity at cost-saving fixed escalations directly to its tenants at 10 of its Sandton office buildings next month (October 2025). It is anchored by a 195GWh power purchase agreement with Etana Energy, signed in 2023, drawing on hydro, wind, and solar supply equal to 32.0% of Growthpoint’s energy consumption for its 2023 financial year.

The first electrons of e-co₂ renewable electricity will be wheeled from October 2025 via the national grid from the Boston Hydroelectric Plant in the Lesotho Highlands Water Scheme, developed in partnership with Serengeti Energy. E-co₂ provides tenants with three benefits: certified zero-carbon electricity, blockchain registered Renewable Energy Certificates (RECs) that can be used as verified proof of Scope 2 carbon emission reductions or traded on global renewable energy markets, and cost-saving fixed escalations.

Growthpoint is driving water resilience and waste reduction through targeted programmes designed to cut intensity across the portfolio. Over the next three years, it projects saving 89.4 megalitres of water. This year, it diverted 43.0% of waste from its properties from landfill and is on track to reach 50.0% next year. Its water resilience infrastructure continues to grow, with 40 registered boreholes and 162 backup facilities providing nearly 10,000 kilolitres of storage capacity.

Growthpoint is a Level 1 B-BBEE contributor and invested R58 million in corporate social responsibility during the year, with a strong focus on its flagship education projects. Its social investment directly benefitted 7,316 individuals, while enterprise development initiative Property Point sustained 216 jobs.

“With deep specialist expertise and our significant portfolio, Growthpoint is advancing our ESG commitments and reshaping how real estate investment delivers environmental and social returns,” says Sasse.

V&A WATERFRONT

Growthpoint’s 50.0% interest in the V&A Waterfront in Cape Town has a property value of R13.3bn, which makes up 10.0% of Growthpoint’s total asset book value and contributed 16.3% to DIPS. Once again, the V&A delivered excellent performance. NPI increased 10.4% even with the Lux Mall and The Table Bay hotel temporarily undergoing value-adding redevelopment. Growth was driven by a full year of trading from newly introduced operational businesses in the hotel sector as well as those that opened during the year, the income activation of the Union Castle building in December 2024 and a strong cruise season. Vacancy is negligible, holding steady at 0.3%. Like-for-like NPI grew 12.7%.

NPI from operating businesses, where the V&A enjoys both the rewards and risks of a revenue-sharing model versus the traditional pure-rental model, increased to 16.0% of NPI from 10.0% in FY24. The V&A now has three hotels with nearly 600 keys under operating agreements. The Radisson Red Hotel delivered standout growth. Increased tourism, reflected in 6.0% more international visitors arriving at Cape Town International Airport in FY25, drove turnover rental gains across hotels, attractions and retail. The V&A drew 24 million visitors.

Retail sales increased by 5.8% reaching over R10.0bn, with further upside ahead as the new 3,759m² Lux Mall is set for phased occupation post-completion in December 2025. Office NPI increased by 17.0% and like-for-like by 10.0% on the back of strong demand, near-zero vacancy, high renewal rates and modest rental growth. The marine and industrial segment saw increases across the board in cruise vessels visits, casual birthing and charter boats.

Hotels, residential and leisure increased NPI by 10.0% with like-for-like growth of 27.0%. The V&A’s hotels recorded 23.8% higher average daily rates, steady occupancy and increased overall revenue per available room. A new luxury hotel with branded residences will launch mid-2026. Residential vacancies remain low and construction on the new 5 Dock Road apartments began this year, targeting completion by December 2025.

GROWTHPOINT INVESTMENT PARTNERS

 Growthpoint’s alternative real estate co-investment platform, GIP, is 1.8% of Growthpoint’s total asset book value and contributed 3.8% to DIPS. It includes two funds distinct from Growthpoint’s core assets. Growthpoint Student Accommodation Holdings, operating under the Thrive Student Living brand, attracted R425m in new equity during the year. Growthpoint Healthcare Property Holdings expanded its mandate to include aged living and hospital-linked medical consulting rooms as it continues to drive scale. GIP closed the period with R8.6bn of assets under management, evenly weighted between the two funds.

INTERNATIONAL INVESTMENTS

 Growthpoint continues to optimise its international investment. On 30 June 2025, 38.0% of property assets by book value were located offshore, and 28.7% of its DIPS was generated offshore. Foreign currency income of R1.4bn (FY24: R1.6bn) reflected the streamlined capital structure achieved during the year.

GOZ, which invests in high-quality industrial and office properties in Australia, accounts for 23.2% of Growthpoint’s total assets by book value and contributed 20.4% to its DIPS. Growthpoint received a steady R1.0bn net distribution from GOZ. GOZ’s distribution decreased 5.2% to AUD18.2cps (FY:24: AUD19.3cps) which excludes a special distribution of AUD2.1cps distributed to compensate for the increased dividend withholding tax due to the sale of industrial assets. GOZ’s payout ratio for FY25 was increased to 87.0% from the prior year’s 80.7%.

GOZ maintained a strong balance sheet and reduced gearing from 40.2% to 39.7%. The directly owned GOZ portfolio performed well, with occupancy remaining high at 94.0% (FY24: 95.0%) and a 5.6-year weighted average lease expiry.

The year was marked by strong momentum in GOZ’s funds management business. GOZ divested its non-core holding in Dexus Industria REIT and established the AUD198 million Growthpoint Australia Logistics Partnership with TPG Angelo Gordon owning 80.0%. It also launched the Growthpoint Canberra Office Trust, which acquired a high-yielding, primarily government-leased, A-Grade office building in Canberra’s CBD. Despite this momentum, performance was tempered by increased costs, lower lease surrender fees and high exposure to Melbourne office assets. The local market continues to recover gradually with valuations under pressure due to policy headwinds and delayed interest rate cuts. Cap rates valuations are stabilising. GOZ issued FY26 distribution guidance of AUD18.4cps.

GWI, which invests in offices and mixed-use precincts in Poland and in Romania where it also develops logistics parks, represents 12.2% of Growthpoint’s total assets by book value and a 5.1% contribution to DIPS. GWI displayed fundamental improvement with stronger key metrics. The portfolio value increased by 0.8% to EUR2.6bn. The capital cities of Warsaw and Bucharest continued to outperform regional markets. Like-for-like NPI grew 6.0%, offset by higher interest costs due to the recent Eurobond refinance.

Gearing remains a low 38.0% and liquidity strong with EUR325m of cash on hand and EUR115.0m of undrawn debt. GWI’s improved financial strength is reflected in cash dividends replacing prior scrip payments, although distribution growth has yet to follow, with a 33.3% decrease in distribution per share to EUR14.0cps dampened by higher finance costs and the EUR5.9m impact of a new tax policy in Poland.

GWI continues to invest in its portfolio, including its current refurbishment of the 48,300m² Renoma mixed-use property in Poland. In Romania, it delivered and secured a 20-year lease on 5,900m² of the Craiova Logistics Hub.

Lango, which invests in prime commercial real estate assets in key gateway cities across the African continent (excluding SA), accounts for 1.7% of Growthpoint’s total assets by book value and made a 0.2% contribution to DIPS. Lango finalised the acquisition of USD200m of assets from Hyprop Investments Limited and Attacq Limited, further cementing its position as the premier African real estate investment vehicle north of SA. Growthpoint received R11.0m dividend income from Lango.

Growthpoint has exited its investment in the UK, selling its stakes in C&R and, post FY25, NRR. At year-end the investment in NRR represented 0.9% of total assets by book value, which made a 3.0% contribution to DIPS.

LOOKING AHEAD

 Growthpoint sees the property cycle entering a growth phase. Driving this positive shift are the improving performance from Growthpoint’s SA portfolio driven by strengthening property fundamentals, continued outperformance by the V&A, GOZ’s strong operational fundamentals and reduced interest rates.

Key metrics are improving consistently across all three SA sectors, supported by Growthpoint’s capital recycling strategy into higher-yielding opportunities with non-core SA asset sales of R3.5bn targeted for FY26. The V&A Waterfront is on track for double-digit growth. Reduced finance costs will continue to benefit the business.

On the international front, elevated capital costs domestically and globally, continue to constrain prudent investment growth.

For FY26, Growthpoint guides DIPS growth between 3.0% and 5.0% and DPS growth of between 6.0% and 8.0%, with a payout ratio of 87.5%.

“Growthpoint’s diversified portfolio and income streams, and its embedded sustainability, which are all constantly being improved by skilled leadership and dedicated teams, position it strongly for FY26. The positive momentum across the portfolio is clear, and it is being driven by operational resilience and strategic execution,” concludes Sasse, who will lead the business for one more financial year before handing over the Group CEO role to current SA CEO Estienne de Klerk on 1 July 2026.

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“Our sturdy performance during the period reflects the dominance and resilience of our portfolios in South Africa and Eastern Europe despite geopolitical challenges,” CEO Morné Wilken said. “We continue to look beyond the short term for organic and new growth opportunities to deliver value for all our stakeholders.

“In line with our growth and diversification strategy, we recently announced our intention to make a voluntary offer for a controlling stake in MAS plc to expand our footprint in the Eastern European market, for which we have raised R808 million via a book build. We believe the MAS plc transaction could be a game changer for Hyprop and will give us access to new countries in the region, namely Romania and Poland. However, before proceeding with the transaction, we must meet certain conditions, with one key condition being approval from our shareholders.

“If this transaction does not proceed, we can effectively deploy these funds into reducing debt in the short term, as well as for asset management initiatives, organic growth opportunities, further solar-PV projects and new investments within Hyprop’s expansion strategy.”

Hyprop is strongly positioned to make investments, with R1.2 billion of cash and R2.2 billion in available bank facilities, after receipt of the capital raise proceeds. The cash injection took the LTV ratio down from 36.3% at 31 December 2024 to 34.2%.

Since the Group embarked on its new strategic journey in 2019, it has made significant progress, including optimising its EE portfolio, settling dollar equity debt in the sub-Saharan Africa portfolio, and selling the sub-Saharan Africa portfolio in return for shares in Lango, a pan-African real estate investment company. In the same period, Hyprop reduced its LTV from a peak of 52%, shaved its euro equity debt from €403 million to €87 million, simplified its structure, improved its credit rating, and continuously invested in enhancing the attractiveness and sustainability of its centres in South Africa and Eastern Europe.

SA and EE centres maintain attractiveness

In the South African portfolio, tenant turnover rose 7% in the five months ended 31 May 2025 compared with the same period in 2024 while trading density increased by 10.2%. At 31 May 2025, retail vacancies were 3.9%, primarily due to Edgars’ rightsizing its stores in the portfolio, which provides flexibility to secure new tenancies to meet shoppers’ demands. The weighted average reversion rate remains in positive territory at 2.9%, and the retail new deal reversion rate was very pleasing at 13.5%.

All the centres have made good progress with letting and projects. Here are some of the highlights:

In the Western Cape, Canal Walk is pleased to see that Edgars is performing well in the new rightsized space, which includes a world-class fragrance and cosmetics offering. Overall, leasing activity has been positive, with office demand increasing significantly. At Somerset Mall, the Phase 2 expansion of the centre is progressing well, and terms have been agreed with several stores which will occupy the expanded area, including Game, Computer Mania, Total Sports, a variety of athleisure and affordable luxury brands such as New Balance, Burnt, Curve Gear, and Napapijri, an international outdoor apparel brand. At CapeGate, the development of satellite offices around the centre on a leasehold basis is still in the early stages, but it is gaining traction and already attracting potential tenants.

In Gauteng, Rosebank Mall enhanced its tenant mix by adding six new stores: Cannafrica, One Stop Travel & Tours, Drip4Life (IV drip experts), Glow Theory (Korean beauty store), John Craig and Cajees (a watch and accessories retailer). Hyde Park Corner will be significantly enhanced in August with the opening of a new Checkers FreshX store. At Woodlands, the Pick n Pay supermarket has rightsized from 5 600m² to 3 636m² and a new lease agreement has been signed with a franchisee. The Glen completed its egress and ingress project in April and is currently refurbishing its exterior signage.

In Eastern Europe, tenant turnover increased by 3.5% and trading density rose by 4.0%, despite a decline in foot count of -3.3% mainly due to non-trading Sundays in Croatia and recent store boycotts related to rising food prices. Despite these challenges, tenant demand remains robust, as reflected in the modest 0.1% vacancy rate at 31 May 2025.

In Croatia, City Center one East and City Center one West continued to broaden their retail offerings. At The Mall in Bulgaria, various projects have been completed to enhance the sustainability and efficiency of the centre: upgrading the lighting system, replacing the water meters to enable remote reading, and replacing the roof structures over the parking ramps with more durable material. Recent highlights at Skopje City Mall include the grand openings of Ehoreca, the official Nespresso reseller in North Macedonia, and the new Gerry Weber mono-brand store that opened in February 2025.

Enhancing energy, water and waste resilience

Hyprop is focusing on solar-PV installations at its centres and is taking the necessary steps to add a further phase at The Glen. Meanwhile, CapeGate, Somerset Mall and Canal Walk are beginning their initial phases of solar projects. In June 2025, the Group will issue a request for proposals to the energy wheeling market to enhance both existing and new solar-PV installations. Once these solar-PV and wheeling energy projects are completed, they are expected to supply more than 60% of the SA portfolio’s energy requirements. Additionally, the total carbon emissions of the SA portfolio, relative to the 2019 baseline which was aligned with Science-Based Targets, will be below the carbon reduction targets set for 2030.

The three-day backup tanks and pumps for potable water have been installed at all Gauteng centres, with similar initiatives set to start soon in the Western Cape. The organic waste recycling initiatives have proven highly effective, with five centres (Canal Walk, CapeGate, Somerset Mall, The Glen and Woodlands) achieving net zero waste status.

Looking ahead

“Our focus is on creating retail spaces that connect people by providing excellent retail experiences for our tenants and shoppers while unlocking value through initiatives within our existing portfolios in South Africa and Eastern Europe,” Wilken said.

“We will continue to pursue both new and organic growth opportunities in our preferred geographies (being the Western Cape and Eastern Europe), reposition the SA and EE portfolios to maintain their dominance and retain and grow market share, annually review our portfolios and recycle capital where appropriate, implement sustainable solutions to reduce the impact of the infrastructure challenges we face in South Africa, and ensure our balance sheet remains robust.

“Hyprop is confident of delivering strong growth in the coming financial year through improved operational performance of its portfolios, including benefits from solar and other energy projects anticipated to come on stream, a reduction in interest costs and the benefits from deploying the additional R808 million of capital, even in the absence of the MAS transaction,” Wilken added.

Hyprop expects to release its results for the six months to 30 June 2025 on or about 16 September 2025.

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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.”

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HIGHLIGHTS

• Earnings: Distributable income per share for the year 123.01 cents, up 4.1%
• Financial performance: Rental income up 8.3%, occupancy up 16 000m² and net investment property value up 6.0% to R12 billion
• Portfolio growth: Number of trading properties increased from 99 to 108, with the total portfolio including developments now exceeding 700 000m² GLA
• Strategic partnerships: Working with Hines, one of the largest privately held real estate investors and managers globally, on five development projects in the UK
• Balance sheet management: Loan-to-value ratio of 31.3% and 84.2% of net debt subject to interest rate hedging
• Future outlook: Forecasting distributable income per share growth of 5 – 6% for FY26

JSE REIT Stor-Age, South Africa’s leading and largest self storage property fund, marked a decade of consistent performance and significant portfolio growth, releasing its tenth annual set of results since listing on the JSE in 2015. Demonstrating resilience, the Group continues to strengthen its market-leading position, delivering another year of robust financial and operational performance.

Stor-Age CEO Gavin Lucas comments, “In 2015 we brought to market a highly specialised self storage REIT, 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 JSE. After a decade of consistent performance, we are pleased to have delivered another strong set of trading results, driven by gains in occupancy and rental rates. While continuing to maintain a conservative balance sheet, we’ve also grown the number of trading properties in our portfolio from 99 to 108.

“Against the backdrop of persistently weak macroeconomic conditions, and including events such as “Nenegate” happening less than a month post our listing, the Financial Services Conduct Authority investigation into high-profile JSE-listed REITs, Covid-19 and a period of rampant inflation and rapidly escalating interest rates, Stor-Age has significantly outperformed both the economic cycle and sector indices over the past decade.

“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 R329 at the end of May 2025. The same investment in the JSE All Share Index and in the JSE All Property Index would be worth R255 and R112 respectively. The underpin to this stellar performance has been our same-store rental income growth in both SA since 2016 and the UK since 2017, with the compound annual growth rate over the periods in excess of 9% and 8% in SA and the UK respectively, well ahead of the corresponding GDP figure of less than 1% in each market.”

During the past twelve months the South African portfolio delivered another strong performance with same-store rental income and net property operating income increasing by 10.2% and 11.1% respectively compared to the prior year. The UK portfolio delivered an equally pleasing set of results, with same-store rental income and net property operating income increasing by 6.5% and 5.0% respectively.

Stor-Age has a long and successful track record of acquiring, developing and managing self storage properties in prime locations that have delivered high occupancy and rental rate growth. Over the past two years, the Company has completed 12 new developments, six each in South Africa and the UK. Each of these developments were completed in JV structures, where Stor-Age partners with institutional or private equity capital, enabling the Company to acquire, develop, operate and manage assets across multiple locations.

In FY25 the Company opened two new developments in SA, one in Century City in Cape Town and another in Kramerville in Johannesburg, and one development in the UK, located in Leyton in East London. In addition, the Company added four new third-party managed properties in the UK and acquired an existing operator in South Africa, Extra Attic, located near Cape Town Airport.

Post year-end, in June 2025 the Company opened a new £25 million property in Acton, West London in its JV with Moorfield. In addition, following Stor-Age entering into a third-party management agreement with Hines earlier in the year to manage the acquisition of a three-property portfolio in the UK, the two companies have now also partnered on five additional development projects. Hines is a privately owned global real estate investment manager overseeing c. US$90 billion in assets across multiple property sectors. Stor-Age’s development pipeline at year-end consisted of 18 active projects at various stages of planning and completion, amounting to over 83 000m^² GLA.

Comments Lucas, “We continue to evaluate new on-balance sheet developments, including extensions to existing properties, and also exploring opportunities to continue partnering with institutional and private equity capital. These partnerships may take the form of joint ventures or sit within our third-party management platform, which enables us to generate additional revenue with minimal capital outlay. This flexible approach has proven successful in the UK where the portfolio has expanded from 26 properties two years ago to 45 today.”

Concludes Lucas, “Over the past decade we have consistently demonstrated our resilience and the ability to deliver robust financial and operational performance despite encountering challenging macroeconomic headwinds in both markets. We will continue to deploy capital strategically, adding quality and scale to our high-quality portfolio on a select basis and in line with our strict investment criteria.

“In South Africa, an improved inflation outlook, a stabilising political climate and recent interest rate cuts have created a favourable environment for further growth. We expect the UK self storage sector to remain resilient, with moderate revenue growth supported by operational efficiencies. We remain focused on enhancing operational performance and driving growth across both South Africa and the UK, supported by a strong and flexible balance sheet, disciplined capital allocation and robust operating margins.”

Stor-Age is forecasting distributable income per share growth of 5 – 6% in FY26.

The share closed on Friday at R16.45.

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