Equites Property Fund (EQU) H2 2026 earnings summary

Executive summary

• Distribution per share grew 5.3% year-on-year to ZAR 1.4101, at the lower end of guidance due to delayed UK portfolio sale, with growth driven by strong South African operations and a strategic exit from the UK market.

• NAV per share increased 1.2% to ZAR 16.69, with strong SA portfolio performance offset by UK FX headwinds.

• Portfolio value rose to ZAR 28.7 billion, with 59 SA facilities and minimal vacancy (0.3%).

• Loan-to-value (LTV) at year-end was 35.1%, expected to drop to ~25% post-Aviva disposal.

• Completed Aviva UK portfolio sale, unlocking over R2bn for redeployment into South African assets.

Financial highlights

• Like-for-like rental income grew 5.4%, supported by new developments.

• Net property income bolstered by Riverfields, Wells Estate, and Meadowview projects.

• Gross finance costs declined year-on-year due to effective treasury management.

• Cash and undrawn facilities totaled ZAR 3.1 billion at year-end, supporting liquidity.

• Weighted average net initial yield of 8% (8.3% excluding Shoprite JV assets).

Outlook and guidance

• Distributable share guidance for the year ahead remains at 5%-7%, reflecting Aviva proceeds and robust pipeline, with FY27 DPS guidance set at 147.7–150.5 cents.

• ZAR 4-6 billion expected to be deployed in SA over the next 36 months.

• Optimism for strong development years ahead, with significant RFPs in progress.

• Capital deployment to be focused on SA developments, with selective UK equity investments for REIT compliance.

• Guidance underpinned by long WALE and contractual escalations.