JSE-listed Vukile Property Fund has posted strong financial results for the year ended March 2025, with profit more than doubling over the period.

The company delivered a 6% increase in its full-year dividend and a 3% rise in funds from operations (FFO) per share. Looking ahead, it has raised its guidance for 2026, expecting at least 8% growth in both FFO and dividends.

Profit attributable to shareholders rose sharply to R3.2 billion from R1.6 billion the previous year, while basic earnings per share climbed nearly 78% to 270.71 cents.

Gross property revenue reached R4.4 billion, and operating profit before finance costs increased by 40% to R3.26 billion.

The group declared a final dividend of 76.5 cents per share, bringing the total for the year to 131.7 cents. Net asset value per share also improved to R22.39.

The increase in direct property investments – from R36.6 billion to R50.3 billion – was driven largely by acquisitions in Spain and Portugal.

Vukile exited its positions in Lar España and Fairvest during the year, ending its exposure to listed indirect property holdings.

In South Africa, Vukile’s retail portfolio showed positive signs, with vacancies falling to 1.7%, trading activity rising, and operating costs decreasing as a share of income.

The company also expanded its renewable energy programme, with solar now supplying more than a quarter of its portfolio’s electricity needs.

Performance in Spain and Portugal remained strong, with high occupancy levels, rising rents, and long lease terms. New acquisitions during the year included several shopping centres across both countries, further expanding the group’s European footprint.

Post year-end, the company completed another deal in Portugal with the acquisition of Forum Madeira.

Vukile maintained a stable financial position with R2.1 billion in cash and R2.5 billion in undrawn credit facilities at year-end. Its loan-to-value ratio stood at 40.95%, while its hedge ratio increased to 83.9%, up from 58.5% the year before. Only a small portion of the group’s debt is due in the next financial year.

Looking ahead, the company expects to build on its performance through continued operational focus and selective acquisitions.

For the year ending 31 March 2026, Vukile is guiding for at least 171.5 cents in FFO per share and a dividend of at least 142.2 cents. A separate announcement detailing the final dividend and its tax treatment will be issued via SENS.

Shares in Vukile are up 20% over the past year, to R19.62, outperforming the listed property sector which is forecast to deliver 8%-9% income returns in 2025.