Linkedin-in
Twitter Linkedin-in

QUICK
LINKS

SA REIT Association

Vukile extends its consistent strong operational performance

by

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

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

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

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

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

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

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

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

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

Growthpoint exceeds upper end of distributable income per share

by

Growthpoint exceeds upper end of distributable income per share forecast and sees stronger growth ahead

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.

 

Vukile’s classroom campaign empowers children

by

 

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

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

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

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

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

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

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

Active and responsive community investment

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

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

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

 A multi-faceted platform for local change

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

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

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

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

 Taking community-centred action

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

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

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

 

Spear REIT Provides HY2026 Pre-Close Update

by

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

by

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.