Spear REIT HY2026: Cashflows firm, R1.08bn deals, solar surge

• Distributable income tracking ahead of guidance; 95% payout with 34.93c DPS and strong 98.45% cash collections.
• R1.08bn Western Cape acquisitions at 9.54% yield add 137,090m²; occupancy 95% trending to 96 - 97%.
• Balance sheet resilient: 14.26% LTV pre-deals, 3.84x ICR; solar coverage approaching around 70%.

Introducing Spear REIT

‍Spear REIT is a Western Cape focused, diversified listed property fund with 39 assets spanning industrial, commercial and retail. The portfolio totals 487,317m² GLA and an asset base of R5.58bn, underpinned by active leasing and disciplined capital allocation.

HY2026 Snapshot (to 31 Aug 2025)

• DIPS tracker: 36.77c (to July); DPS: 34.93c (≈95% payout).
• Operations: rent reversions flat; escalations 7.31%; occupancy 95% (guiding to 96–97% by period-end).
• Collections: 98.45%.
• Balance sheet: LTV 14.26% (pre-acquisition); ICR 3.84x; around R400m liquidity post-commitments.
• Sustainability: solar on track for +-67% of the portfolio, rising to around 70% with new assets.

CEO Comment

The first half of FY2026 reflects our team’s consistent execution in driving rental cashflows, managing risk, and growing our Western Cape–focused portfolio.

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“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.” Quintin Rossi, CEO, Spear REIT

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Sector Performance (YTD to July 2025)

• Retail: 91.7% occupancy; 12.2% like-for-like income growth; 13.7% rental uplifts in convenience/destination formats.
• Commercial: 92.2% occupancy; 7.0% income growth despite negative reversions; >16,000m² renewed/re-let.
• Industrial: 96.6% occupancy; positive reversions; temporary income dip from a sustainability-linked vacancy at Mega Park.

2025 Acquisitions & Key Milestones

• R1.08bn acquisitions (initial yield 9.54%), adding ~137,090m²:
  • Berg River Business Park (Paarl)
  • Consani Industrial Park (Elsies River)
  • Maynard Mall (Wynberg)
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• Equity raise: R749m in June 2025 to fund growth and PV rollout.
• Development pipeline: expansion plans in Blackheath and George progressing toward approvals.
• Index visibility: aiming for JSE All-Property Index inclusion in March 2026 (subject to confirmation).
• Pro forma scale: assets expected to lift to around R6.65bn post-integration.

Looking Ahead

‍Management reaffirms FY2026 guidance with DIPS growth of 4 - 6% vs FY2025, driven by:

• Improving occupancy (toward 96 - 97%) and stable escalations;
• Contribution from new acquisitions at attractive initial yields;
• Solar rollout expanding coverage toward around 70%, supporting operating resilience;
• Conservative leverage and strong liquidity to fund selective opportunities.

Bottom line for investors

‍A resilient Western Cape platform, disciplined execution, and accretive acquisitions support income growth and balance-sheet strength through HY2026 and beyond.

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