Vukile Property Fund says it is on track to meet its full-year guidance of at least 8% growth in funds from operations (FFO) and dividends per share (DPS).

In its pre-close presentation for H1 FY2026, the REIT forecasts its retail portfolio net operating income (NOI) to increase by 10.1% with annual like-for-like NOI growth projected to increase by 8% (FY2025: 6.4%), driven by sustained high occupancies, additional PV, and operational cost savings.

Vukile says that its local portfolio has seen growth in trading density, particularly in its township assets (+7.6%) and rural assets (+4.6%), commuter (+5.3%), and value centres (+3.8%) with overall trading density growth of +5.3%.

Its township and rural centres continue to outperform in both year-on-year sales (+8.8%, +4.1%) and footfall (+0.3%, +0.9%) with year-on-year portfolio sales having increased by 5.1%.

Overall, the Company’s retail vacancies remains stable at 1.8% with its rural and value centres effectively fully let with vacancies of 0.2% and 0.1% respectively.

79% of Vukile’s 68 384m² renewed leases were concluded during the period with national and mid-tier tenants with increased overall tenure with the recent weighted average lease expiry (WALE) on renewals higher than the portfolio average (+4.5 years versus +3.4 years).

Its cost-to-income ratio has consistently improved annually, reaching 13% in H1 FY2026 from 15.3% in FY2025 with the better trade environment resulting in improved collection rates of 101% and a 36% decrease in outstanding balances.

CEO of Vukile Property Fund, Laurence Rapp, noted that the REIT has made significant progress in the integration of its newly acquired assets in Iberia with both its Spanish and Portuguese portfolios, through its subsidiary Castellana, having delivered strong metrics during the period.

It’s Spanish portfolio, which grew 6.7% (excluding Bonaire SC), recorded a 3% increase in footfall, a 5.7% increase in sales, with an occupancy rate of 99.3%, rental collections of 98.5% and 138 leases signed during the period (63 renewals, 75 new contracts) while its Portuguese portfolio recorded a 3% increase in footfall, a 4.1% increase in sales, with an occupancy rate of 98.4%, rental collections of 94.3% and 32 leases signed (21 renewals, 11 new contracts).

The REIT acquired Forum Madeira for c.€63 million at a yield of 9.5% in April 2025.

In August 2025, Vukile concluded the issuance of R500 million in senior unsecured corporate bonds across three- and seven-year maturities – six-times oversubscribed with 21 investors participating. It achieved the lowest margins since the DMTN programme launched in 2012. In addition, GCR upgraded its credit rating to AA+_(ZA) with a stable outlook.

The Company plans to publish its results for six-month interim period to 30 September 2025 in late November 2025.