Vukile Property Fund has posted its results for the six months to 30^th September 2025, outperforming guidance and upgrading full-year expectations with a 9% increase in its half-year dividend per share (DPS) of 60.20 cents per share with growth of at least 9% in both DPS and funds from operations (FFO) anticipated for the full 2026 financial year.

The REIT holds a total of R54 billion in property assets with approximately two thirds (and net property income) generated in Spain and Portugal through its 99.6%-held subsidiary, Castellana Properties while its South African portfolio comprises township, rural, urban and commuter malls.

Both portfolios delivered like-for-like net operating income growth (NOI) – 8.7% in Iberia and 10% in South Africa.

Vukile’s local retail portfolio’s value increased by 5.9% to R17.7 billion with vacancies remaining low at 1.8%. The Company says the portfolio continues to deliver positive rental reversions, edging upwards of 2.5% with nearly 85% of space let to national retailers. The retail portfolio recorded trading density growth of 5.4% with the township and rural portfolio outperforming at 5.9%. Footfall grew by 1.9%.

The recent redevelopment of Mall of Mthatha, co-owned with Flanagan & Gerard, has added significant value to its SA portfolio, having delivered measurable gains with the asset’s value up by nearly 40%.

Vukile further reduced its local portfolio’s cost-to-income ratio from 15.3% to a record-low 12.5%, reflecting the benefit of additional solar PV installations.

The Company is acquiring 50% in the 42 400m² Chatsworth Centre in KZN from Sanlam, which will remain a co-owner, with a R620 million investment representing an 8.75% yield with transfer anticipated for December 2025.

Castellana’s €1.8 billion portfolio remains effectively fully let with more than 95% of space let to blue-chip international and national tenants and vacancies of 1.3%. It achieved positive rental reversions and new lets of 7.5% (9.55% in Portugal and 7.12% in Spain) with a weighted average lease expiry of 8.9 years. Footfall in the portfolio was up 3.5% with sales increasing by 4.2%.

Global Credit Ratings upgraded Vukile’s credit rating to AA+(za) with a stable outlook during the period, while Fitch upgraded Castellana’s rating to BBB.

With liquidity of nearly R7.65 billion available to deploy, Vukile says it has an active pipeline of financially accretive and strategically aligned deals in South Africa and Iberia which it expects to close by mid-2026.

Vukile closed the period with a loan-to-value (LTV) ratio of 41.6%.