Vukile Property Fund (VKE) H1 2026 earnings summary

Executive summary

• Achieved strong operational and financial results, integrating recent acquisitions in Spain, Portugal, and South Africa, and expanding in core markets.

• Spanish and Portuguese portfolios delivered outstanding metrics, with successful integration of new assets and value-add initiatives.

• South African portfolio exceeded NOI growth projections, driven by top-line growth, cost efficiencies, and solar PV initiatives.

• Credit ratings upgraded for both the group (AA+ (ZA)) and Castellana (BBB), reflecting robust property performance and strong access to capital.

• R410 million in non-core asset disposals to be redeployed into energy management and investment pipeline.

Financial highlights

• Dividends per share increased by 9% to ZAR 0.602, with a total payout of ZAR 824 million.

• FFO per share up 2% to ZAR 0.839, with non-IFRS adjustments for special levies and fair value changes.

• NAV per share increased by 6.5% to ZAR 23.84; share price up 18.9% since March 2025.

• Group loan-to-value at 41.6%, expected to fall below 40% post equity raise; interest cover ratio at 2.7x.

• Average cost of funding reduced to 5.4% (ZAR), with 91% of debt hedged.

Outlook and guidance

• Upgraded guidance for FFO and dividend per share growth to at least 9% for FY 2026.

• Full-year FFO per share expected at least 173.1 cents; dividend per share at least 143.6 cents.

• Momentum from H1 expected to continue into H2, supported by a strong pipeline and well-capitalized balance sheet.

• Focus remains on operational excellence, sustainability-led opportunities, and disciplined acquisitions in core markets.