Equites Property Fund (EQU) H1 2027 earnings summary

Executive summary

• Interim DPS rose 5.11% YoY to 72.57cps; FY27 guidance was reaffirmed at 147.7–150.5cps, implying 5%–7% growth at a 100% payout ratio.

• The £200.5m Aviva portfolio sale advanced the UK exit, releasing £95m net proceeds for planned South African logistics redeployment.

• R600m was deployed into South African developments and acquisitions; LTV fell to 28.1%, with R2.9bn in cash and undrawn facilities.

Financial highlights

• Distributable earnings rose 10% to R630.1m; net property income increased 1% to R992.7m, while interim DPS rose from 69.04c to 72.57c.

• NAV per share increased 4.5% to R17.43; annualised total accounting return was 18.5%.

• SA like-for-like rental growth was 5.3%, or 6.1% excluding Waterfall properties; investment-property valuation growth was 2.8% like-for-like, adding R587m.

• Net finance charges declined 23% to R180.9m after UK debt settlement; distributable admin expenses fell 18% to R46.4m as UK costs wound down.

• Profit attributable to owners was R1.241bn versus R838.9m restated; basic EPS was 143.0c versus 101.1c, and headline EPS was 88.9c versus 53.1c.

Outlook and guidance

• FY27 DPS guidance remains 147.7–150.5cps, representing 5%–7% growth at a 100% payout ratio; assumptions include rental growth, pipeline delivery and funding-cost optimisation.

• Seven projects represent R2.4bn completion value and ~200,000m²; yields on cost are 8%–9%, with completion scheduled from Sep-26 to Aug-27 and R1.3bn of spend remaining.

• DHL Leeds is being marketed for sale, with disposal expected within 12 months; Thrapston and Basingstoke exits will be pursued to maximise shareholder value.

• Capital deployment is expected to use balance-sheet headroom without debt or equity market recourse; management expects UK equity proceeds to be redeployed within 18–24 months.