Equites Property Fund (EQU) H2 2026 earnings summary

Executive summary

• Distribution per share grew 5.3% year-over-year to ZAR 1.4101, at the lower end of guidance due to delayed U.K. portfolio sale, driven by strong operational performance in South Africa and a strategic exit from the UK market.

• NAV per share increased 1.2% to ZAR 16.69, with strong South African portfolio performance offset by adverse FX on U.K. assets.

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

• Portfolio value at ZAR 28.7 billion, with 59 South African facilities and a WALE of 13.7 years.

• Transitioned from asset recycling to disciplined capital deployment, prioritizing South Africa as the main growth engine.

Financial highlights

• Like-for-like rental income increased 5.4%, supported by new developments at Riverfields, Wells Estate, and Meadowview.

• Net property income growth underpinned by rental increases and efficient cost management.

• Finance costs declined year-over-year despite a slight increase in debt, due to effective treasury management.

• Cash and undrawn facilities total ZAR 3.1 billion, ensuring strong liquidity for pipeline execution.

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

Outlook and guidance

• Guidance for distributable share growth remains at 5%-7% for the year ahead, reflecting Aviva proceeds and capital deployment.

• FY27 distribution per share guidance set at 147.7–150.5 cents, underpinned by long WALE and contractual escalations.

• Pipeline in South Africa could see ZAR 4-6 billion deployed over the next 36 months.

• Optimism for bumper development years ahead, with significant RFPs in progress and strong tenant demand.

• Capital deployment to be focused on high-quality opportunities, with share buybacks considered only at attractive prices.