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Archives for June 17, 2025

Growthpoint brings warmth and dignity to Tembisa learners

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Growthpoint and Threads for iKasi partner bring warmth and dignity to Tembisa learners

Empowering young futures through staff-led community engagement

Growthpoint Properties (JSE: GRT), in collaboration with the non-profit organisation Threads for iKasi Foundation and on behalf of its employees, has donated 50 full winter school uniforms to learners at Ikusasa Comprehensive School in Tembisa, Kempton Park. The handover ceremony, held at the school on Friday 23 May 2025, showed the spirit of employee-driven social impact.

Each complete uniform package includes a jersey, drymac, trousers with shirt, shoes, socks and a winter beanie. These donations are part of Growthpoint’s G² (Growthpoint Gives) programme, which enables the company’s team members to actively participate in upliftment efforts in their own communities.

Ikusasa Comprehensive School is a beacon of resilience and academic ambition in the Tembisa community. With a consistent rise in matric pass rate, increasing from 77.1% in 2021 to an outstanding 95.8% in 2024, the school aims to achieve a 100% pass rate and a 75% Bachelor’s pass this year. Together with its strong academic programme, Ikusasa promotes holistic development through arts, sports, culture and active social awareness campaigns around bullying, substance abuse and health.

The school currently supports many vulnerable learners, including eight child-headed households and 47 orphans. It faces infrastructure challenges and requires greater access to educational resources, technology, and classroom upgrades.

“We are incredibly touched by the generosity of Growthpoint and Threads for iKasi,” says Principal Gladwell Makhoba of Ikusasa Comprehensive School. “These uniforms mean so much more than just clothing – they restore dignity, boost self-esteem, and remind our learners that they matter. The support we’ve received sends a powerful message: our children are seen, they are valued, and they have a community that believes in their future.”

Threads for iKasi, with its mission to create environments where no child is left behind, has successfully rolled out similar initiatives in over a dozen schools in Tembisa. Its model is grounded in restoring dignity through educational support and ensuring that learners are equipped not just academically, but emotionally and socially.

“For me, a school uniform has always meant more than just clothing — it’s a sense of pride, a feeling of belonging, and a quiet promise of potential,” says Khabo Mnguni, Co-founder of Threads for iKasi. “Growing up in the township, I saw firsthand how something as simple as a uniform could change how a child saw themselves. That’s why this mission is so close to my heart. Our partnership with Growthpoint is a golden thread of care, stitched into the futures of these learners. It’s about more than just warmth and appearance — it’s about dignity, confidence, and showing our children that they are seen, supported, and worthy.”

This contribution reflects the heart of the G² programme, which encourages Growthpoint’s staff to lead with empathy and impact.

Shawn Theunissen, Head of Corporate Social Responsibility at Growthpoint Properties. “A Growthpoint team member introduced Threads for iKasi, which brought Ikusasa’s needs to our attention, and we are proud to support their call. In addition to providing vital warmth for children in winter, the initiative is also affirming dignity and supporting learners to focus on their education without unnecessary hardship.”

Growthpoint Properties’ CSR approach is rooted in its commitment to responsible corporate citizenship. Through G², every employee also receives eight hours annually to participate in volunteer activities, making social impact a shared value across the organisation.

“We believe that corporate responsibility lives not just in boardrooms but in every hand helping,” adds Theunissen. “This donation is one small part of our broader commitment to our employees, their communities and to education. We believe that partnerships with educators will yield positive results towards our shared vision of building a better life for all.”

Vukile produces powerful results in a pivotal year

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Vukile produces powerful results in a pivotal year and is primed for further growth

Vukile Property Fund (JSE: VKE), the leading specialist retail REIT, reported a standout set of results for the financial year ended 31 March 2025, reflecting a transformative year of dealmaking, ongoing operational excellence, and decisive and disciplined capital deployment. Delivering on its market guidance, Vukile achieved 3% growth in full-year funds from operations (FFO) per share and increased its dividend per share (DPS) by 6%.

Vukile announced upgraded FY26 guidance, forecasting growth of at least 8% in both FFO per share and DPS.

Laurence Rapp, CEO of Vukile Property Fund, comments, “We are pleased to report strong results in a transformative year, distinguished by accretive strategic growth and capital rotation. This outstanding performance validates Vukile’s strategy, expands its earnings base and positions the business for compounding future growth.”

It’s total property assets now exceed R50 billion, reflecting an ambitious yet tightly focused investment strategy. During the year, Vukile grasped a golden window of opportunity that expanded its Iberian direct asset base by nearly 60%, consolidating its footprint across two of Europe’s most resilient consumer economies. Now, 65% of the group’s assets, and an expected 60% of its net property income is derived offshore.

Vukile entered Portugal during the year through its 99.6% held Spanish subsidiary Castellana Properties. The fully-funded multi-asset entry capitalises on Portugal’s strong economic growth and fragmented retail property sector that is ripe for consolidation, mirroring opportunities seized in Spain.

Continuing its creative dealmaking, in Spain Vukile exited its investment in Lar España with a capital profit of €82 million, concurrently redeploying the proceeds into acquiring the Bonaire Shopping Centre in Valencia with a cash-on-cash return exceeding 8% thereby enhancing sustainable earnings.

Vukile closed the year with an investment portfolio of 33 urban, commuter, township and rural malls in South Africa,15 shopping centres and retail parks in Spain and five shopping centres in Portugal.

 “In South Africa, Vukile’s robust operating platform yet again delivered outstanding results,” notes Rapp.

Valued at R16.7 billion, Vukile’s defensive, dominant South African retail portfolio delivered strong performance and growth. The value of its retail portfolio rose by 8.5%, while like-for-like net operating income increased by 6.4%. Vacancies remain exceptionally low at 1.7%, supported by active letting, with positive rental reversions of 2.4%. Notably, 85% of leases were signed at the same or higher rental levels, with tenant retention at 91%. The total portfolio recorded trading density growth of 5.2% – with its township and rural portfolio outperforming at 6.7% – driven by Vukile’s shopper-first approach, which continues to boost footfall and sales. The portfolio’s cost-to-income ratio was 15.3% – its lowest level in a decade – reflecting proactive cost management, with the benefit of solar energy contributing to significant efficiency gains.

Vukile’s solar PV rollout in South Africa has been highly successful, boosting margins and advancing its path to carbon neutrality. Over the year, solar capacity grew by 67%, with 14.4MWp added to the existing 21.6MWp. Solar power now supplies 27% of the portfolio’s energy needs. Vukile has identified a further 10.6MWp of solar projects for FY26 and is finalising the agreements for two wheeling projects totalling 2MWp.

Adding value to its South African portfolio through acquisitions and developments, Vukile’s R113 million redevelopment of Mall of Mthatha (formerly BT Ngebs), in which Vukile acquired a 50% stake in May 2024, has delivered strong early performance, with the vacancy rate dropping from 16% when acquired to just 2%. The highly accretive project is set for completion in September 2025. The comprehensive R141million Bedworth Centre strategic upgrade in Vanderbijlpark, delivered a high-convenience, community-focused retail destination with enhanced tenant mix, aesthetics, amenities, access and security.

Vukile’s well-established investment in Spain, together with its new investment in Portugal has clearly cemented Castellana’s position as a market leader, capitalising on the advantages of the region’s status as a European growth powerhouse.

The Economist ranked Spain as Europe’s top-performing economy in 2024, with GDP growth of 3.2% and forecasts of 2.3% in 2025. The country’s economic growth is fuelled by strong household spending. Disposable income rose by 8.7%, supported by higher salaries, employment and savings levels. Additionally, tourism hit a record €126 billion with 94 million visitors.

Portugal’s economy outperformed expectations with 1.9% growth in 2024, driven mainly by household consumption, with record-high employment levels, real wages increasing and high disposable income. Private consumption rose 3.2% in 2024. Growth is forecast at 2.3% in 2025. Like Spain, Portugal is benefiting from easing inflation, projected to fall to 2.3% in 2025.

Castellana’s R32.9 billion, 20-asset Iberian portfolio remains effectively fully let, with marginal vacancies of around 1% and 95% of space let to blue-chip international and national tenants. Portfolio like-for-like net operating income grew 6.4%. It achieved high positive rental reversions and new lettings of 17.31%. The portfolio has a weighted average lease expiry of 8.8 years. Excellent trading metrics featured across the portfolio, with footfall up 2.4% and sales increasing by 4.3%.

“Castellana’s on-the-ground presence and expertise has added substantial value to the Iberian portfolio. This year has been one of rapid growth in the region, and our priority is to crystalise potential in our newly acquired assets and deepen value within our existing footprint.” says Rapp.

Vukile’s balance sheet remains exceptionally strong, with a stable LTV of 40.95% and an increased ICR of 2.9-times. The REIT enters FY26 with a well-hedged balance sheet and minimal debt maturities of less than 2% of group debt in FY26, as well as a very healthy liquidity position, with cash and undrawn facilities of R4.6 billion.

Vukile has an AA(ZA) corporate rating reaffirmed by GCR with a positive outlook. Fitch has awarded Castellana an international investment-grade credit rating of BBB- also with a positive outlook.  Over the year, Vukile increased its green and sustainability-link debt by 69% from R1.3 billion to R2.2 billion, aligning its funding strategy with its continued commitment to ESG goals.

Rapp concludes, “Vukile is in a strong position, underpinned by a clear strategy, a proven operating platform, a strong balance sheet, high-quality assets and disciplined capital management. It is well placed to deliver sustainable real growth by maintaining operational excellence, advancing value-added projects within existing portfolios and pursuing further opportunities in our core markets. We are committed to our proven scalable consumer-led model to create value for all our stakeholders.”

Stor-Age reports strong year end results

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Stor-Age reports strong year end results, delivering a decade of successful performance

HIGHLIGHTS

  • Earnings: Distributable income per share for the year 123.01 cents, up 4.1%
  • Financial performance: Rental income up 8.3%, occupancy up 16 000m² and net investment property value up 6.0% to R12 billion
  • Portfolio growth: Number of trading properties increased from 99 to 108, with the total portfolio including developments now exceeding 700 000m² GLA
  • Strategic partnerships: Working with Hines, one of the largest privately held real estate investors and managers globally, on five development projects in the UK
  • Balance sheet management: Loan-to-value ratio of 31.3% and 84.2% of net debt subject to interest rate hedging
  • Future outlook: Forecasting distributable income per share growth of 5 – 6% for FY26

JSE REIT Stor-Age, South Africa’s leading and largest self storage property fund, marked a decade of consistent performance and significant portfolio growth, releasing its tenth annual set of results since listing on the JSE in 2015. Demonstrating resilience, the Group continues to strengthen its market-leading position, delivering another year of robust financial and operational performance.

Stor-Age CEO Gavin Lucas comments, “In 2015 we brought to market a highly specialised self storage REIT, the first self storage REIT to be listed on an emerging market exchange globally and the first, and still only, of the real estate “alternatives” to be listed on the JSE. After a decade of consistent performance, we are pleased to have delivered another strong set of trading results, driven by gains in occupancy and rental rates. While continuing to maintain a conservative balance sheet, we’ve also grown the number of trading properties in our portfolio from 99 to 108.

“Against the backdrop of persistently weak macroeconomic conditions, and including events such as “Nenegate” happening less than a month post our listing, the Financial Services Conduct Authority investigation into high-profile JSE-listed REITs, Covid-19 and a period of rampant inflation and rapidly escalating interest rates, Stor-Age has significantly outperformed both the economic cycle and sector indices over the past decade.

“Assuming R100 was invested on the date of our listing in November 2015 and provided that the full pre-tax dividend was reinvested, an investment in Stor-Age would be worth R329 at the end of May 2025. The same investment in the JSE All Share Index and in the JSE All Property Index would be worth R255 and R112 respectively. The underpin to this stellar performance has been our same-store rental income growth in both SA since 2016 and the UK since 2017, with the compound annual growth rate over the periods in excess of 9% and 8% in SA and the UK respectively, well ahead of the corresponding GDP figure of less than 1% in each market.”

During the past twelve months the South African portfolio delivered another strong performance with same-store rental income and net property operating income increasing by 10.2% and 11.1% respectively compared to the prior year. The UK portfolio delivered an equally pleasing set of results, with same-store rental income and net property operating income increasing by 6.5% and 5.0% respectively.

Stor-Age has a long and successful track record of acquiring, developing and managing self storage properties in prime locations that have delivered high occupancy and rental rate growth. Over the past two years, the Company has completed 12 new developments, six each in South Africa and the UK. Each of these developments were completed in JV structures, where Stor-Age partners with institutional or private equity capital, enabling the Company to acquire, develop, operate and manage assets across multiple locations.

In FY25 the Company opened two new developments in SA, one in Century City in Cape Town and another in Kramerville in Johannesburg, and one development in the UK, located in Leyton in East London. In addition, the Company added four new third-party managed properties in the UK and acquired an existing operator in South Africa, Extra Attic, located near Cape Town Airport.

Post year-end, in June 2025 the Company opened a new £25 million property in Acton, West London in its JV with Moorfield. In addition, following Stor-Age entering into a third-party management agreement with Hines earlier in the year to manage the acquisition of a three-property portfolio in the UK, the two companies have now also partnered on five additional development projects. Hines is a privately owned global real estate investment manager overseeing c. US$90 billion in assets across multiple property sectors. Stor-Age’s development pipeline at year-end consisted of 18 active projects at various stages of planning and completion, amounting to over 83 000m² GLA.

Comments Lucas, “We continue to evaluate new on-balance sheet developments, including extensions to existing properties, and also exploring opportunities to continue partnering with institutional and private equity capital. These partnerships may take the form of joint ventures or sit within our third-party management platform, which enables us to generate additional revenue with minimal capital outlay. This flexible approach has proven successful in the UK where the portfolio has expanded from 26 properties two years ago to 45 today.”

Concludes Lucas, “Over the past decade we have consistently demonstrated our resilience and the ability to deliver robust financial and operational performance despite encountering challenging macroeconomic headwinds in both markets. We will continue to deploy capital strategically, adding quality and scale to our high-quality portfolio on a select basis and in line with our strict investment criteria.

“In South Africa, an improved inflation outlook, a stabilising political climate and recent interest rate cuts have created a favourable environment for further growth. We expect the UK self storage sector to remain resilient, with moderate revenue growth supported by operational efficiencies. We remain focused on enhancing operational performance and driving growth across both South Africa and the UK, supported by a strong and flexible balance sheet, disciplined capital allocation and robust operating margins.”

Stor-Age is forecasting distributable income per share growth of 5 – 6% in FY26.

The share closed on Friday at R16.45.

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