SA REITs extend 2025 rally with solid August gain

• August up 2.4%; YTD 14.2%, momentum intact despite equities’ 23.6% lead.
• Capital raises restart: Dipula buys Protea Gardens; Dipula & Fairvest raise R1.5bn+.
• Guidance lifts: multiple REITs point to 3 - 7% distributable growth ahead.

REITs sector performance

SA REITs rose 2.4% in August, taking YTD to 14.2%. That trails equities (23.6% YTD) but comes off a high 2024 base when REITs returned 35.8% vs 13.4% for equities. The rebound is broad-based, aided by easing bond yields and falling funding costs.

Trading updates & activity

• Capital & funding: Dipula bought Protea Gardens Mall (R478.1m) and raised R559m (bookbuild). Fairvest raised R976m for KZN/WC acquisitions.
• Guidance:
  • Dipula (FY25): +4 - 6% distributable income/share
  • Equites (FY26): +5 - 7%
  • Octodec (FY25): +3 - 6%
  • Redefine (FY25): +3 - 5%
  • Spear (FY26): +4 - 6%
• Portfolio reshaping: Growthpoint leadership changes (CEO Estienne de Klerk from Jul ’26; CFO José Snyders from Jan ’26) and sale of Capital & Regional stake (£50.5m). Accelerate sold Buzz & Waterford centres (R215m).
• Results: Resilient interim dividend 245.72c (+12.2% y/y); SA like-for-like NPI +8.6%; strong contributions from Lighthouse and French centres.

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“The recovery in listed property has been broad-based and underpinned by a constructive global interest rate environment. Lower bond yields are reducing the cost of debt, while strong share price gains are lowering the cost of equity capital. Together, these trends are giving the sector renewed financial flexibility.”

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“These growth rates may appear modest by historical standards, but given how scarce earnings growth has been, they’re very encouraging. Investors have taken note, which explains part of the strong price gains over the past 18 months.”
‍Ian Anderson (Merchant West Investments)

Outlook

With cheaper debt, more supportive equity pricing, and deal pipelines reopening, external growth should accelerate into late 2025–2026. The sector looks positioned for inflation-beating distributable growth plus attractive yields, keeping double-digit total returns on the table, even after 2024–2025’s rebound.

Download Chart
SA REIT Association Chart Boo, August 2025 is available for download here. https://sareit.co.za/sareit-research/#chartbooks

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