Dipula Properties has delivered a strong set of results for the year ended 31^st August 2025, shortly following its top-spot ranking in the Sunday Times’ Top 100 Companies for 2025.

The Company’s second half performance outpaced the first half, driving a full-year 5% increase in distributable earnings which translates to full-year distributable earnings per share of 57.26 cents.

Approaching the 15-year mark as a listed entity on the JSE, Dipula Properties generates 67% of its income from retail assets in townships, rural, and urban convenience locations. It also has a core portfolio of logistics and industrial assets (13% of income), office assets (16%), and a small non-core residential property portfolio (45) – collectively across SA, but predominantly in Gauteng.

The REIT’s property portfolio increased in like-for-like value by 6% to R10.8 billion during the period – and 10% for retail, supporting a 7.5% rise in its NAV. Revenue, excluding straight-lining, increased 4% to R1.517 billion with net property income increasing by 3%.

Dipula’s total cost-to-income ratio of 43.2% (FY2024: 42.6%) reflected a marginal increase due to inflation-driven property expense increases and the effect of lower office rental renewals achieved during the previous year. Its administrative cost-to-income remained stable at below 4%.

Its retail portfolio’s vacancies reduced to 5%, despite total portfolio vacancies having edged up slightly from 7.5% to 8.5% – mainly due to short-term dynamics in its office and industrial assets.

The REIT achieved a weighted average positive renewal rental rate across its portfolio of 0.6%, an improvement over the -9.7% for FY2024 with new and renewed leases concluded during the period amounting to R801 million.

Dipula disposed of R200 million of non-core assets during the year with proceeds allocated to repaying debt and asset management strategies. It says that discussions are in advanced stages to sell its affordable and conveniently located residential rental units which represent 4% of its income with a current 6% vacancy rate. The planned disposal will see Dipula reallocating capital into the retail and industrial sectors.

The Company finalised five acquisition agreements in August 2025, totalling approximately R700 million at a total average weighted yield of 10% – the largest of these was the R480 million purchase of the 24 000m² Protea Gardens Mall in Soweto. It has also secured two industrial assets – a newly developed state-of-the-art distribution centred of 16 000m²+ in Klerksdorp as well as the 6 964m² Airborne Industrial Park near OR Tambo International Airport. These transactions are also being funded, in part, by Dipula’s oversubscribed September 2025 equity raise of R550 million.

Achieving a compound annual growth rate of 57%, the Company delivered a total return of 854% meaning that R10 000 invested in Dipula since September 2020 was worth R95 424 as at 31^st August 2025.

The REIT’s loan-to-value (LTV) ratio reduced to 34.9%, compared to 35.7%, with a steady ICR of 2.8 times at yearend. Post yearend, its gearing reduced to 29%.

Fairvest Limited currently holds a 23% stake in Dipula as its biggest shareholder.