Spear REIT Limited has posted its results for the six months ended 31^st August 2025, reporting a 24.99% increase in net property operating growth and a 25.72% increase in total revenue growth compared to HY2025.

“During the HY2026 Spear’s management team has remained acutely focused on successfully navigating the challenging trading environment and building on the rising tide of tenant activity and strengthening market fundamentals year to date,” comments Spear REIT’s CEO, Quintin Rossi. “Despite overall positive sentiments the HY2026 period has not been without its challenges but in the same vein the half year has been a very active period for Spear as we have diligently focussed on robust operational outcomes, maintaining a strong financial cadence and executing on key aspects of Spear’s growth strategy.”

With 39 assets in its core portfolio currently valued at R5.7 billion (a 3% increase on FY2025), the Company’s occupancy levels remained healthy at 95.03% with a 98.96% collection rate.

Its industrial portfolio, comprising 14 assets, makes up 62% of its GLA with its development pipeline including the GTX project set to add 30 000m² of industrial GLA, Bravo Park extension 2 in Blackheath 7 000m² GLA and Anchorage in Parden Eiland 2 000m² of industrial GLA. The portfolio recorded a 3.51% vacancy rate for the period, with a 1.55% rental reversion rate (year-to-date) and a weighted average unexpired lease term of 38.27 months.

Currently, 47.5% of Spear REIT’s retail tenant mix across its 8 assets are national tenants. The Company says the addition of medical retail assets during HY2026 have been smoothly integrated and they are trading well. Its retail portfolio recorded a 3.76% vacancy rate, with a -3.81 rental reversion rate year-to-date and a weighted average unexpired lease term of 31.44 months.

Spear REIT’s commercial portfolio of 17 assets recorded a 9% year-to-date vacancy rate with a -10.84% rental reversion year-to-date and a weighted average unexpired lease term of 23.99 months.

The Company acquired assets to the value of R1,074 billion during HY2026 at an average acquisition yield of 9.54% – more than its weighted average cost of capital. The new acquisitions are expected to transfer into its core portfolio during Q3 and Q4 2026.

Its loan-to-value (LTV) currently sits at 13.85% prior to the implementation of the Berg River Industrial Business Park, Consani Industrial Park, and Maynard Mall in Wynberg.

Its Board reported a 5.21% increase in distributable income per share (DIPS) for the half year to 43.87 cents per share (HY2025: 41.61 cents per share) and a distribution per share of 41.59 cents per share (HY2025: 39.53 cents per share), while maintaining a 95% payout ratio.

It says its full year DIPS guidance has been maintained at a growth rate of between 4% and 6% for FY2025.