Equites Property Fund (EQU) H2 2025 earnings summary

Executive summary

• Achieved 2.1% growth in distribution per share (DPS) to ZAR 1.3392, maintaining a 100% payout ratio and reaching the upper end of guidance.

• Completed ZAR 3.2 billion in new logistics facilities in South Africa, with no further UK development activity and a focus on exiting UK assets.

• Strategic asset sales of non-core and older properties, with ZAR 2.4 billion sold in FY25 and ZAR 6.8 billion since FY23, supporting a robust balance sheet.

• Vacancy in South Africa remains extremely low, with the portfolio valued at ZAR 27.7 billion and strong demand for A-grade logistics.

• Significant progress in ESG initiatives, including increased solar capacity to 26.7MW and green certifications.

Financial highlights

• Distribution per share grew 2.1% to ZAR 1.3392, at the upper end of guidance, with distributable earnings up 8.9% year-over-year.

• NAV per share at ZAR 16.49, down 3.8% year-over-year, impacted by ENGL transaction write-downs and FX movements.

• Loan-to-value (LTV) reduced to 36% from 39.6% year-over-year, aided by disposals and equity raised via DRIPs.

• Like-for-like rental and valuation growth of 6% in the South African portfolio, with net property-related income up 6%.

• Cost of debt in South Africa reduced by 50bp to 8.6%, with UK cost of debt stable at 3.9%.

Outlook and guidance

• DPS guidance for FY26 is 5%–7% growth, with continued commitment to a 100% payout ratio.

• Expectation to exit UK assets by end of calendar year 2026, with significant repatriation of funds to South Africa.

• Focus on developing logistics parks for supply chain optimization and capital growth, targeting e-commerce and leading retailers.