Collins Property Group has reported a profit from continuing operations (before non-controlling interest) of R573 million for the year ended 28^th February 2025, down from R1 207 million in 2024. The Group says FY2024’s profit was inflated by R667 million due to the write back of deferred tax liabilities due to its REIT conversion.

Revenue increased by 1% to R1 247 million due to the sale of non-core assets with its finance costs decreasing by R28 million due to lower interest rates.

“The financial year to February 2025 felt like a tale of two cities. The first half of the year’s activity was subdued as business in general was waiting on the outcome of the SA General Elections in May 2024. There was very little commitment during this period, and this could be seen in our vacancies at 3% halfway through the year. Post elections and the formation of the GNU, reduced load shedding and falling interest rates helped boost business confidence which fed through to increased activity in the business,” notes the REIT.

“The confidence and optimism felt going into the December break unfortunately did not carry through into Q1 2025 primarily due to geopolitical risks, the United Stats’ tariffs and resultant trade frictions. The SA National Budget impasse has had a negative impact on the strength of the GNU, introducing more pressures to the SA economy. Despite these challenges, Collins Group’s performance remains solid.”

The Group’s basic and headline earnings per shares decreased due to the prior year’s inflated profit with FY2025 including a significant lease smoothing adjustment due to the cession of several leases related to the buyout of a minority shareholder. Collins Property Group acquired the remaining 30% of its subsidiary, Dimopoint.

Collins Property Group reported a net profit attributable to shareholders of R510 million compared to the corresponding year’s net profit of R1 139 million with distributable income having increased by 15.8% from R311 million in 2024 to R361 million 2025. Its cost-to-income remained at 18%.

The REIT’s total assets currently amount to R12 198 million (29^th February 2024: R12 332 million) with its loan-to-value (LTV) ratio having decreased to 49.8% from 50.8% in FY2024. Its net asset value (NAV) per share increased by 7% to R16.15 as of February 2025 with shareholders’ total return for FY2025 equating to R2.02 per share and representing a 12.5% return on its NAV or 18.5% on the yearend closing share price.

“Our industrial and logistics portfolio, which represents 65% of gross asset value, has been our backbone for many years”, says the Group which currently owns 54 assets spanning 1.2 million square metres. The portfolio reported a decrease in vacancies from 2.7% at February 2024 to 0.9% at February 2025.

Its 43 retail assets account for 28% of the Group’s asset value with 87 000m² (40%) of the gross lettable area (GLA) termed as ‘standalone’ properties with no line shop reliance to uplift the yield. Vacancies in the retail portfolio decreased to 4.7% in February 2025 from 8.1% in February 2024.

Collins Property Group is exploring opportunities to sell down on its 14 office assets which only make up 7% of its gross asset value. Post yearend, the REIT signed an agreement to sell 6 000m² of office space in Windhoek that stood vacant for 3 years. The vacancy rate of its office portfolio improved slightly to 18.4% at February 2025 from 21.7% at February 2024.

Its Board declared a final dividend of 50 cents per share for the period.