Vukile Property Fund has posted its results for the year ended 31^st March 2025, achieving 3% growth in full-year Funds from Operations (FFO) per share and a 6% increase in its dividend per share. The REIT has upgraded its FY2026 guidance and forecasting growth of at least 8% in both FFO per share and distribution per share (DPS).

During the reporting period, Vukile expanded its Iberian direct asset base by nearly 60%. With its total property assets currently exceeding R50 billion, 65% is now derived offshore.

Vukile entered Portugal through its 99.6% held Spanish subsidiary Castellana Properties and exited its investment in Lar España with a capital profit of €82 million, concurrently redeploying the proceeds into acquiring the Bonaire Shopping Centre in Valencia with a cash-on-cash return exceeding 8%.

The Company closed the year with an investment portfolio of 33 urban, commuter, township and rural malls in South Africa with 15 shopping centres and retail parks in Spain, and five shopping centres in Portugal.

Valued at R16.7 billion, Vukile’s South African retail portfolio reported an 8% increase in value with like-for-like net operating income having increased by 6.4%. Vacancies remained low at 1.7% with positive rental reversions of 2.4%. Notably, 85% of leases were signed at the same or higher rental levels with a tenant retention of 91%.

The total local portfolio recorded trading density growth of 5.2% with its township and rural assets outperforming at 6.7%. The portfolio’s cost-to-income ratio was 15.3% – its lowest level in a decade.

During the reporting period, Vukile acquired a 50% stake in Mall of Mthatha (formerly BT Ngebs) and commenced its R113 million redevelopment. The asset’s vacancy rate has dropped from 16% when acquired to just 2%. The project is set for completion in September 2025.

In Spain, Castellana’s R32.9 billion, 20-asset Iberian portfolio remains effectively fully let, with marginal vacancies of around 1% and 95% of space let to blue-chip international and national tenants. Portfolio like-for-like net operating income grew 6.4%, achieving high positive rental reversions and new lettings of 17.31%. The portfolio has a weighted average lease expiry of 8.8 years, recording a 2.4% increase in footfall and a 4.3% increase in sales.

Vukile’s loan-to-value (LTV) ratio currently sits at 40.95% with an increased income cost ratio (ICR) of 2.9 times. The REIT enters FY2026 with minimal debt maturities of less than 2% of group debt and undrawn facilities of R4.6 billion.