Equites Property Fund, South Africa’s only specialist logistics Real Estate Investment Trust (REIT), has reported resilient financial and operational results for the year ended February 2025, with distributable earnings up 8.9% and its full-year dividend per share rising 2.1% to 133.92 cents.
The group, which focuses on high-quality logistics properties let to A-grade tenants on long-term leases, remains bullish about its growth trajectory into 2026, with guidance for distribution per share (DPS) to increase at a rate above inflation.
Equites’ South African portfolio grew to R21.1 billion at the end of February 2025 – up from R19.9 billion in 2024. The portfolio now represents the cornerstone of the group’s asset base.
Equites listed on the JSE on 18 June 2014 with a portfolio value of R1 billion.
Over the past 24 months, Equites said it has executed an extensive asset recycling programme, disposing of smaller, non-core, and non-ESG-compliant properties.
The streamlined portfolio now reflects high income predictability, with like-for-like (LFL) rental growth of 5.9% and a LFL valuation uplift of 6.0%, it said.
The South African portfolio was 100% let at year-end, with a weighted average lease expiry (WALE) of 14.1 years.
Key South African assets include flagship distribution centres occupied by blue-chip tenants such as Shoprite, Takealot, and Pepkor. Notable locations include prime logistics hubs in Midrand, Cape Town’s Airport Industria, and the Lord’s View Industrial Park in Gauteng.
Equites’ UK portfolio also performed well, with rent reviews on three properties delivering uplifts of between 19% and 69%. Valuations were broadly stable, with a 1% increase in GBP terms. The WALE for the UK portfolio sits at 13.1 years, with only one ancillary unit (1.5% of GLA) vacant.
Equites reported a 71.4% increase in gross property revenue to R4.26 billion (FY24: R2.48 billion), with distributable earnings rising 8.9% to R1.12 billion. Headline earnings per share also rose by 6.9%, reaching 125.2 cents per share.
Additional financial highlights:
-Gross property revenue surged 71.4% to R4.26 billion
-Distributable earnings increased to R1.12 billion
-Net asset value (NAV) per share declined slightly by 3.8% to 1,649 cents
-Loan-to-value (LTV) ratio at a stable 36.0%
-R2.4 billion in asset disposals concluded during the year
-R2.9 billion in cash and undrawn facilities available
-Six power purchase agreements (PPAs) signed, expected to generate revenue in FY26
Looking ahead, the board expects the FY26 distribution to grow between 5% and 7%, which equates to approximately 140.62 to 143.29 cents per share. This growth is expected to be driven by new developments completed during FY25, the Group’s stable cost base, and continued strong tenant performance.
The guidance is based on several assumptions, including a stable GBP/ZAR exchange rate within the range of R22.00–R26.00, no major tenant defaults, and continued cost recoveries from tenants.
The final gross dividend of 67.42 cents per share, declared on 14 May 2025, follows the interim dividend of 66.50 cents per share, bringing the total FY25 distribution to 133.92 cents—aligning with the group’s guidance range of 130 – 135 cents.
