Vukile Property Fund (VKE) H2 2025 earnings summary

Executive summary

• Achieved a transformative year with significant asset rotation and international expansion, including major acquisitions in Spain and Portugal and redeployment into high-yielding PV projects.

• Grew direct asset base by 70% to EUR 1.73 billion, with approximately 65% of assets now in Spain and Portugal, driving hard currency earnings and diversification.

• Delivered 3% growth in FFO and 6% growth in dividend per share, maintaining a 20+ year track record of dividend payments.

• Strong operational performance in South Africa and Iberia, underpinned by customer-centric strategy and prudent financial management.

• Major acquisitions fully funded by equity raises and asset disposals, with no immediate need for further equity funding.

Financial highlights

• Gross assets exceeded ZAR 50 billion, with ZAR 2.1 billion in cash and ZAR 2.5 billion in undrawn debt facilities.

• Dividend per share increased by 6% to 131.7 cents; FFO per share up 3% to 158.8 cents.

• Group FFO rose 16% to R1,977 million, with a 22% increase in total dividends to R1,631 million.

• Castellana's property GAV grew 38% to EUR 1.66 billion, with like-for-like GRI up 5% and NOI up 6.4%.

• Group LTV stable at 40.95%, interest cover ratio at 2.9x, and liquidity ratio at 12.8x.

Outlook and guidance

• Upgraded FY2026 guidance: at least 8% growth in both FFO per share (to 171.5 cents) and dividend per share (to 142.2 cents).

• Guidance assumes stable trading, contractual escalations, and no material changes in FX or interest rates.

• Expect 60% of property NOI to come from offshore markets going forward.

• Focus remains on operational excellence, value-add projects, and disciplined capital allocation.