Fairvest Limited has issued an operational update to 31^st August 2025, informing shareholders that it expects to exceed the upper end of its guided growth in distribution per B share of 8% to 10% for FY2025.

During the period, the REIT’s 128 assets (with a total GLA of 1 502 240m²) recorded a vacancy rate of 5.9% (March 2025: 5.5%), a positive rental reversion rate of 5% (March 2025: 4.3%) and reported an average gross rental per m² of R134.15 (March 2025: R130.69).

At the close of the period, Fairvest owned 75 retail properties, up from 72 in March 2025, with a total gross lettable area (GLA) of 565 203m² and a vacancy rate of 3.7% (March 2025: 4.3%). The Group achieved a tenant retention rate of 88% and recorded a positive rental reversion of 4.6% (March 2025: 2.8%). Average gross rental income was R171.20 per m², compared to R168.89 per m² in March 2025, supported by a weighted average built-in escalation of 6.5% and a weighted average lease expiry (WALE) of 33 months. Fairvest signed 301 new leases covering 41 817m² of GLA (August 2024: 263) and renewed 321 leases with a total GLA of 82 564m² (August 2024: 290).

Fairvest owns 28 office assets totalling 214 654m² of GLA, recording a vacancy rate of 13%, slightly down from 13.4% in March 2025. Its tenant retention rate stands at 64.2%, with a positive rental reversion of 4.7% (March 2025: 6.9%). The Group’s average gross rental income per m² increased to R130.64 from R129.51 in March 2025, supported by a weighted average built-in escalation of 7% and a WALE of 29.1 months. The REIT signed 109 new leases in its office portfolio covering 24 832m² of GLA (August 2024: 134 leases, 34 028m²) and renewed 66 leases totalling 29 402m² of GLA (August 2024: 62 leases, 20 811m²).

Its 25 industrial assets cover a total GLA of 272 384m² with a vacancy rate of 4.9%, up from 1.6% in March 2025. Tenant retention stood at 76.9% (March 2025: 85.2%), while the portfolio’s positive rental reversion increased to 8.1% from 6.8% with an average gross rental per m² of R56.60, compared to R56.12 in March 2025, a weighted average built-in escalation of 7.1% (March 2025: 7.0%) and a WALE of 23.5 months, down from 28.7 months. During the period, the REIT’s team signed 75 new leases covering 45 328m² of GLA (August 2024: 93 leases, 60 945m²) with 64 leases renewed for a total GLA of 37 418m² (August 2024: 72 leases, 66 870m²).

The Group acquired Thembalethu Square in George and Shoprite Manguzi, Ulundi Shopping Centre, and Nquthu Shopping Centre in KZN with Eyethu Junction in KZN anticipated to transfer latest by November 2025. It disposed of New Pioneer Park and Access City in Gauteng.

Fairvest says its loan-to-value (LTV) ratio is expected to be below 30% as of 30 September 2025, with its fixed debt exceeding 85%. All bank covenants are anticipated to be comfortably met, with the Group having refinanced R1.7 billion of debt at a weighted average margin of 1.33% over three-month JIBAR.

Additionally, R400 million in new capital was raised through an oversubscribed accelerated book build in late March 2025 at a 1.05% discount to the 30-day volume weighted average price. A further R976 million was raised in late August 2025 via another accelerated book build at a 2.28% discount, also oversubscribed.

Fairvest currently holds a 26.3% stake in Dipula Properties.