Fairvest (FTA) H1 2025 earnings summary

Executive summary

• Achieved robust performance with 8.8% growth in distribution per B share and 2.7% for A share year-over-year.

• Maintained a 100% pay-out ratio and reduced loan-to-value to 31.8%, reflecting disciplined financial management.

• Strategy focused on transitioning to a retail-only REIT, disposing of non-core office and industrial assets.

• Portfolio comprises 127 properties valued at R12.5 billion, with a market cap of R9.2 billion and a 5.5% vacancy rate as of March 2025.

• Increased stake in Dipula Properties to 26.3%, now accounted for as an associate.

Financial highlights

• Revenue (excluding straight-line rental) up 6.9% to R1.07 billion for the six months ended 31 March 2025.

• Like-for-like net property income increased by 5.1% year-over-year.

• Distributable income up 22.0% to R423.1 million; distributable income per B share up 8.8% to 23.10 cents.

• Basic earnings per A share: 73.46 cents; per B share: 25.76 cents.

• Headline earnings per A share: 72.92 cents; per B share: 25.22 cents.

Outlook and guidance

• Distributable earnings per B share expected to grow 8.0%–10.0% for FY2025.

• Distribution per A share to increase by the lesser of 5% or CPI.

• Maintain 100% pay-out ratio and LTV below 35%.

• Guidance assumes stable macroeconomic conditions and no major tenant failures.

• Conservative balance sheet and selective acquisitions at the right price.