Equites delivers record FY25 performance, streamlines UK exit to fuel SA growths

Top 3 Bullet Points:

• FY25 DPS of 133.92 cents per share, underpinned by 100% payout ratio and 5.9% like-for-like rental growth in SA.
• Loan-to-value ratio reduced from 39.6% to 36%, backed by R2.4 billion in strategic disposals and R2.9 billion liquidity buffer.
• Six new renewable energy PPAs secured; solar rollout now powers over two-thirds of portfolio, with green revenue streams growing.

Equites Property Fund Limited has reported a standout performance for the 2025 financial year, marked by robust growth in both its South African and UK portfolios, a streamlined capital structure, and strategic exits to unlock long-term shareholder value.

Equites achieved a full-year distribution per share (DPS) of 133.92 cents, hitting the upper end of guidance, while maintaining a 100% payout ratio. The Group’s balance sheet was bolstered by a reduction in its loan-to-value (LTV) ratio to 36%, down from 39.6%, supported by R2.4 billion in asset disposals and R2.9 billion in available liquidity.

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CEO Andrea Taverna-Turisan said, “The combination of disciplined capital allocation, strong rental growth, and proactive energy strategies has allowed Equites to deliver outstanding results and strengthen its balance sheet amid a challenging macroeconomic environment.”

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The R27.7 billion prime logistics portfolio remains near fully let at 99.9% occupancy, with a weighted average lease expiry (WALE) of 14 years. The South African portfolio, valued at R21.1 billion, produced like-for-like rental growth of 5.9%, valuation growth of 6.0%, and ended the year with zero vacancy.

In the UK, selective rent reviews delivered uplifts of 19% to 69%, reinforcing the portfolio’s strength. However, with market dynamics shifting, the Group is exiting its UK holdings, having already disposed of seven assets and a development platform. Proceeds are earmarked for reinvestment in ESG-compliant logistics developments in South Africa.

Equites is already capitalising on these prospects with significant projects like the R1.2 billion Shoprite facility in the Eastern Cape and a R1.3 billion Shoprite campus in Riverfields, each secured on 20-year leases. Three speculative builds totaling 20,116m² were all fully let quickly, affirming demand for premium logistics real estate.

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“As South Africa’s only specialist logistics REIT, we see sustained demand from retailers and 3PLs, particularly for ESG-compliant, efficient warehousing,” said Taverna-Turisan. “We’ve built long-term relationships with leading tenants and hold land that positions us to meet this demand strategically.”

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Equites’ ESG commitment continues to bear fruit. Its solar capacity reached 26.7 MW, with six Power Purchase Agreements (PPAs) in place and more to follow. These agreements generate additional revenue while enhancing tenant resilience.

The Group also reduced its SA cost of debt from 9.1% to 8.6%, thanks to refinancing and interest rate hedging. Over 83% of total debt is hedged, with a weighted maturity of 3.8 years in SA and nearly 90% of UK debt maturing only in FY33.

Looking ahead, the Board expects DPS growth of 5%–7% for FY26, targeting 140.62 to 143.29 cps, driven by completed developments and stable rental escalations.

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“Equites remains committed to sustainable income and inflation-beating growth,” said Taverna-Turisan. “Our strategic clarity, disciplined execution, and world-class portfolio are delivering real value.”