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Archives for October 2025

Hyprop’s Clearwater Mall secures South Africa’s first Walmart Store

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Hyprop-owned centre brings international retail giant to West Rand, creating 80+ jobs

Clearwater Mall Secures South Africa’s First Walmart Store

Clearwater Mall, owned and managed by Hyprop Investments, will become home to South Africa’s first Walmart store, marking the American retail giant’s debut entry into the local market.

The announcement transforms Clearwater Mall’s retail offering and introduces Walmart’s distinctive “Every Day Low Prices” model to South African consumers. Unlike traditional sale-driven retail, shoppers will benefit from stable pricing across thousands of products year-round, eliminating the need to wait for promotional periods.

“Being selected as the location for South Africa’s first Walmart store demonstrates the strength of our retail offering and our commitment to the West Rand community,” said Kelly Belman, General Manager of Clearwater Mall. “The creation of more than 80 new jobs adds real economic value to our region, which makes this announcement even more meaningful.”

The store will occupy the mall’s upper level, featuring wide aisles, clear signage and bright lighting. Product categories span fresh and frozen foods, groceries, health and beauty products, clothing, baby essentials, homeware, electronics, toys and seasonal items.

Walmart’s product strategy emphasises local partnerships, with the majority of merchandise sourced from South African suppliers. Select international offerings will include the Beautiful range by actress Drew Barrymore – a collection of stylish kitchen appliances designed to bring premium quality to everyday cooking.

Public excitement has been building steadily since the announcement, with the store set to create more than 80 positions ranging from shop floor roles to management.

“The addition of Walmart is expected to increase foot traffic and create positive ripple effects for neighbouring businesses within the centre,” concluded Belman.

The Walmart Clearwater store will be located at Clearwater Mall upper level, Hendrik Potgieter Road and Christiaan de Wet Road, Strubens Valley, Roodepoort. The official opening date will be announced in the coming weeks.

Growthpoint and Feenstra’s Noka Park sets new standard

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Growthpoint and Feenstra’s Noka Park sets new standard for Grade A logistics and industrial space in Gauteng

 New R700m speculative development responds to rising demand for sustainable, tech-enabled warehouses

Growthpoint Properties (JSE: GRT), in partnership with Feenstra Group, has launched Noka Park, a R700 million logistics and industrial development strategically located in Gauteng’s Riverfields logistics precinct, near OR Tambo International Airport. The park is 50/50 co-owned and co-developed by Growthpoint and Feenstra Group and will be managed by Growthpoint.

Construction begins in October 2025, with four buildings to be delivered in phases. The first warehouse is set for occupation from the final quarter of 2026, with the remainder rolled out on completion.

Noka Park tenants will benefit from direct access to transport and distribution corridors; scalable, future-proofed facilities; a professionally managed precinct; and an environment that integrates business performance with sustainability.

Answering demand in a shifting market

 Noka Park is a speculative development designed to meet strong and evolving tenant demand.

“The South African logistics market is currently being reshaped by a ‘flight to quality’ with tenants prioritising high-grade, sustainable and technologically enabled warehouses over more basic facilities,” says Errol Taylor, Head of Asset Management: Logistics & Industrial at Growthpoint Properties.

This trend reflects broader global shifts. Industrial occupiers are increasingly prioritising technology adoption, integrating IoT, AI and automation to streamline warehouse operations and enhance supply chain efficiency. At the same time, sustainability and ESG alignment have moved to the forefront, with tenants seeking energy-efficient buildings that are solar-ready, water-wise and aligned with green certification standards. Even with the recent suspension of load-shedding, energy security remains critical driving demand for logistics parks with reliable power infrastructure and backup systems. Flexibility is equally essential, as the market shows growing interest in mid-sized warehouses ranging from 10,000m² to 30,000m². This makes scalable, adaptable land parcels, like those offered within Noka Park, a significant competitive advantage.

“Noka Park speaks directly to these market dynamics,” notes Taylor. “This development with Feenstra Group demonstrates how considered partnerships and strategic site selection can deliver superior value for tenants. It provides immediate efficiency and resilience, but also long-term sustainability for tenants. We are confident that Noka Park will meet and exceed these requirements.”

Expanding a high-performing logistics portfolio

Growthpoint has steadily repositioned its logistics and industrial portfolio as one of its key growth platforms. Logistics and industrial assets have grown from 15% to 20% of its total South African portfolio value, with nearly half of these assets now concentrated in modern logistics warehouses located in high-performing nodes.

This portfolio transformation reflects a deliberate strategy to focus on quality, performance and sustainability, Taylor says, and this is set to continue with a pipeline of demand-driven speculative developments like Noka Park.

Future-ready facilities for modern industry

 With its combination of prime location, modern specifications and environmental integration, Noka Park is designed for a diverse tenant base ranging from e-commerce companies to international logistics operators and warehousing.

“Working alongside Growthpoint on Noka Park has allowed us to combine our strengths to develop this high-quality logistics asset,” says Johann du Plessis, CEO of Feenstra Group Developments. “From the outset, the focus has been on future-proofing the development through sustainable design, adaptability and efficiency. The result is a logistics park that not only serves the needs of tenants today but will remain relevant as this innovative sector evolves.”

Prime location in a strategic logistics hub

 Noka Park is strategically located within the Riverfields logistics hub in Kempton Park, a managed precinct known for its scale, smart infrastructure, and seamless connectivity. Reflecting its location, Noka means “river” in Sesotho.

Situated at the corner of Mulder Road and Blaauwklippen Avenue, the development offers easy access to the R21 freeway and lies only 3km from OR Tambo International Airport, positioning it as a prime node for both national and international distribution. Its proximity to key logistics and commercial assets, including major warehousing, industrial and retail nodes, including Isando, Jet Park and East Rand Mall all within 10kms, reinforces its role as a central access point within Gauteng’s high-performance logistics corridor.

The Riverfields precinct is also notable for its environmental setting within the Ekurhuleni ecological zone, where preserved grasslands, seasonal streams and indigenous landscaping form part of the development, underscoring its environmental credentials.

 Scale and specifications

Noka Park spans 105,000sqm and will deliver over 52,000sqm of high-performance industrial space across four state-of-the-art warehouses designed to accommodate high-volume warehousing, racking, and fast-moving logistics operations. Warehouse footprints range from mid-sized to large-scale facilities, offering flexibility to both blue-chip tenants and growing industrial operators.

Each warehouse is equipped with FM2-specification floors, 12m clear spring height and both dock and on-grade access to support efficient movement of goods, enhanced by built-in offices, with staff areas and ablutions.

Solar-ready roofing, LED lighting and generator-ready infrastructure reflect a focus on operational resilience and energy efficiency. Additional features such as low-e performance glazing further enhance sustainability and thermal performance.

Safety and security are reinforced through fire protection systems, a secure gatehouse with access control, a 2.4m perimeter wall and electric fencing.

“By combining scale, flexibility and modern specifications, Noka Park sets a new benchmark for industrial and light manufacturing facilities in Gauteng,” concludes Taylor.

Growthpoint acquires a 30% stake in Boston Hydroelectric Plant

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Growthpoint acquires a 30% stake in new R390m Boston Hydroelectric Plant

Strategic investment in the hydro plant that is powering the 24/7 clean energy being wheeled to 23 Growthpoint flagship properties

CLARENS, FREE STATE. Growthpoint Properties (JSE: GRT), South Africa’s leading Real Estate Investment Trust (REIT), has acquired a 30% stake in the operational Boston Hydroelectric plant, a new R390 million development with an operational lifetime of over 40 years by leading independent power producer Serengeti Energy within the Lesotho Highlands Water Scheme near Clarens. South Africa’s newest hydroelectric plant was certified for commercial operations by Eskom on Friday (17 October 2025) and has already started adding renewable energy to the national grid.

 As early as 2023, Growthpoint secured exclusive access to all the approximately 30GWh of renewable electricity generated by the plant annually, through its landmark 195GWh power purchase agreement (PPA) with licenced energy trader Etana Energy. Boston Hydro is the first project to come online in a mix of cost-saving, certified zero-carbon hydro, wind and solar electricity generation projects powering the PPA. The renewable electricity from Boston Hydro will supply 23 Growthpoint buildings, including 10 in Sandton Central and three in Cape Town.

Strategic investment advances energy security

 Growthpoint’s 30% stake in Boston Hydro continues its investment in renewable electricity sources and furthers its green energy transition which began more than a decade ago. The property group took its first steps into rooftop solar generation in 2011, from which is has grown a track record of practical, scalable, carbon reducing energy solutions for its business, tenants and South Africa.

Since its first installation, the property group has invested more than R1 billion in solar energy locally, grown one of South Africa’s largest Small Scale Embedded Generator (SSEG) renewable energy fleets and linked it to transparent certification frameworks. Growthpoint owns a fleet of 80 rooftop plants across its portfolio delivering 61.2MWp of capacity and generates a significant amount of clean electricity annually. A further 7MWp of solar installations are in the pipeline for commissioning by mid-2026.

Growthpoint now operates and procures one of South Africa’s most diversified private renewable energy portfolios, combining solar and hydro generation, with wind soon set to join its renewable energy mix as part of the PPA. Together with its rooftop solar, when its PPA with Etana Energy is fully operational, approximately 40% of Growthpoint’s total electricity demand will be supplied from renewable energy.

Powering up transparency too, Growthpoint verifies its renewable energy by registering the electricity generated on the International Renewable Energy Certificate (I-REC) registry via Fuel Switch, Africa’s first blockchain-enabled REC exchange. This ensures global transparency, traceability and accountability across its clean-energy portfolio.

Making renewable energy work for business

Bringing all this together is Growthpoint’s game-changing e-co₂ wheeled renewable energy initiative (which is short for electricity minus carbon dioxide and pronounced “eco two”). This solution is built around Growthpoint’s tenants — thousands of businesses, big and small, in all sectors of South Africa’s economy.

Growthpoint’s pioneering e-co₂ now officially delivers wheeled renewable electricity directly to 10 flagship office buildings in Sandton and their tenants, with the first electrons coming from the operational Boston Hydro over the national grid. e-co2 wheeled green electricity is stable and cost competitive for Growthpoint tenants, it has zero-carbon footprint and certified with tradable digital RECS.

Businesses can, for the first time in South Africa, cut their Scope 2 emissions from purchased electricity in select Growthpoint buildings. So, they can save money, advance their sustainability goals and report certified emissions reductions aligned with evolving IFRS sustainability reporting standards.

The launch of e-co2 positions Growthpoint as South Africa’s first provider of a commercial-scale wheeled renewable energy solution for multi-tenanted commercial properties, with building-level certification and benefits that are made available to tenants in a verified, auditable format.

Leading collaboration in South Africa’s private renewable energy market

Leading the way in bringing certified renewable energy into daily business use, e-co2 is built on unprecedented collaboration and leading-edge skills, cemented by deep environmental stewardship, that forms a connected ecosystem.

Together, Serengeti Energy’s independent power generation at Boston Hydro, Etana Energy’s wheeling offering and power purchase agreement, Growthpoint’s renewable energy offtake for its commercial properties and Fuel Switch’s digital REC registration have formed a pioneering collaboration advancing South Africa’s renewable energy transition.

Growthpoint sits at the centre of this transparent ecosystem, demonstrating how the property sector can lead the shift toward energy security and sustainability, while unlocking shared value for stakeholders.

 Estienne de Klerk, SA CEO of Growthpoint Properties, says: “We are incredibly proud of this innovative initiative, made possible by a visionary team, dedicated partners such as Etana Energy, Serengeti Energy, Fuel Switch and many passionate and talented people over a number of years. It not only benefits the immediate occupants of Growthpoint’s properties but helps to create a brighter and more sustainable future for South Africa.”

 Evan Rice, CEO, of Etana Energy, says: “Growthpoint and Etana’s clean energy partnership is accelerating renewable energy in a way that works for business, the country and the planet. Together, we’re making clean electricity accessible through the grid, securing long-term take-off for IPPs and enabling businesses to cut costs and carbon without complexity. It’s a scalable, transparent model for South Africa’s energy future.”

 Anton-Louis Olivier, CEO, Serengeti Energy, says: “Boston Hydro brings affordable, baseload renewable power to the grid reliably and around the clock. It’s the product of 15 years of operational experience across Africa. We’re proud to be the generation backbone of this ground-breaking clean energy partnership and powering a scalable solution for South African businesses through Growthpoint’s e-co₂.”

 Etana Energy: enabling renewable wheeling at scale, cost efficiently

 Etana Energy plays a pivotal role in bringing eco₂ to life for Growthpoint and its tenants. As a licensed electricity trader, Etana provides the platform that allows renewable electricity generated by independent power producers to reach Growthpoint’s buildings through South Africa’s electrical grid.

This is achieved through renewable electricity wheeling – the process that allows electricity users to buy electricity generated by private power projects located elsewhere in the country, like Boston Hydro, using existing transmission and distribution networks. For businesses in office nodes such as Sandton and the Cape Town Foreshore, this is a game-changer. In these areas, where building roof space is extremely limited, on-site solar generation is impractical, if not impossible.

Etana’s integrated trading platform provides a reliable and scalable mechanism for wheeling clean energy, opening access to affordable renewable energy for businesses across the country. Its collaboration with Growthpoint demonstrates how private-sector partnerships can drive meaningful progress towards a low-carbon, energy-secure future for South Africa.

Growthpoint’s long-term commitment to take up 195GWh of clean electricity annually from Etana Energy has already helped to unlock vital capital for the development of new renewable energy infrastructure for South Africa. In addition to the newly developed Boston Hydro plant, wind and solar generation from Etana’s growing renewable portfolio will be added to Growthpoint’s energy mix from 2026 onwards.

Serengeti Energy: powering progress sustainably

 At the generation end of the eco₂ collaboration, Serengeti Energy brings deep technical expertise and a proven track record in renewable power development across Africa. The company is the developer, constructor and operator of the Boston Hydro project, a 5MW run-of-river hydropower plant located on the Ash River within the Lesotho Highlands Water Project, which is the major water transfer scheme linking Lesotho and Gauteng.

Boston Hydro is the largest of six hydropower facilities along the Ash River and represents Serengeti Energy’s fourth operational hydro plant in South Africa. As a third-generation project of this leading independent power producer, it incorporates insights gained from Serengeti’s nearly 15 years of operating experience across the continent, enhancing system availability, lowering maintenance requirements and improving overall plant performance.

The plant will generate approximately 30GWh of renewable electricity annually, providing reliable 24/7 baseload power to Growthpoint’s eco₂ network through Etana Energy’s wheeling framework. This makes Boston Hydro a cornerstone of Growthpoint’s renewable supply mix.

Listed property is the real economy’s barometer

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SAPOA Convention 2025 panel recap and what it means for South Africa’s REITs

South Africa’s listed property story is one of powerful cycles, resilience and renewal. From a market capitalisation of R3.8 billion in 1998 to more than R400 billion by 2017, the sector outperformed equities and bonds for long stretches before the 2020 correction erased as much as 70% of prices. The SAPOA Convention 2025 listed property panel unpacked this journey and drew a clear conclusion. While listed property is not a perfect proxy for the economy, it remains a credible barometer of real activity when dividend income, operating metrics and capital flows are properly accounted for.

SAPOA Convention 2025 listed property panel moderator Peter Clark (Founder, REdimension Capital) guided a frank conversation with Ian Anderson (Head of Listed Property and Portfolio Manager, Merchant West Investments and compiler of the informative SA REIT Chart Book), Kundayi Munzara (Executive Director & Portfolio Manager, Sesfikile Capital), Pranita Daya (Equity Analyst & Assistant Portfolio Manager, Truffle Asset Management) and Andrew Wooler (Chief Executive Officer, Burstone).

Their core message was measured but optimistic. Dividend growth is returning, balance sheets are better aligned to today’s rate environment and operating fundamentals are improving across many segments. Importantly, when dividends and reinvested income are included over time, no investor who stayed invested “lost money” in the sector. This is a powerful reminder that REITs are designed to channel recurring cash flows to investors, not to offer speculative punts on buildings.

What the cycle taught us

Anderson set the stage with a brief history of the capital super cycle that lifted the asset class for nearly two decades. The sector’s explosive growth was fuelled by income focused products that attracted household investors and by an era of abundant equity that culminated in 2015 to 2017. The correction that followed was severe, yet the recovery since late 2020 has been equally instructive. Listed property has regained leadership on a long horizon because income compounded through the downturn. The lesson is simple. Cash flow discipline beats price chasing.

A second lesson is that capital cycles differ by subsector. Convenience and township retail and logistics have proven more resilient. Office remains the laggard, yet the panel noted falling vacancies in select nodes such as Rosebank and Cape Town, early demand from business process outsourcing and a declining stock base. Patient capital that understands the clock may find value as conditions normalise.

Fundamentals first

Daya argued that on a dividend yield plus growth basis listed property screens well on a three-to-five-year view. Positive rental reversions are reappearing at quality assets, escalations are holding up where demand and supply are balanced and self-generated initiatives such as embedded solar have added durable revenue. Munzara expects low double digit total returns from direct property in South Africa over the cycle and believes listed vehicles can deliver slightly more because of professional asset management and governance.

Valuations remain a key talking point. On average the sector trades at a notable discount to reported net asset value, with wide dispersion across counters. The panel’s take was pragmatic. Private market evidence suggests book values are broadly sound, with an estimated R30 billion of assets sold at a slight premium to NAV in recent years by willing buyers and sellers. Where discounts persist, they often reflect leverage, asset mix, liquidity or a market view on management’s capital allocation record. Better disclosure and consistent definitions for metrics such as like-for-like growth and vacancies would help investors compare companies more cleanly.

Governance, alignment and data

There was strong agreement that governance has improved meaningfully. Crossholdings and related party complexities have reduced and reporting has matured. That said, panellists called for tighter alignment in remuneration and for simpler, standardised KPI definitions across REITs. Investors want transparent links between management rewards and long-term shareholder outcomes. They also want property level data that is comparable across portfolios. The industry has made progress, yet there is more to do.

Capital flows and the cost of money

Wooler noted that the cost of capital has reset globally. Easy equity has given way to a world where discipline in recycling capital, timing disposals and focusing on highest and best use is rewarded. Local banks remain willing lenders at competitive margins which supports private market transactions, yet disposal pipelines from REITs are likely to moderate after several busy years. The broader allocation question remains live. Property still accounts for a low single digit share of the JSE and of balanced portfolios. As policy risk recedes and the rate cycle turns, the panel is seeing growing investor engagement, but property must compete with attractive bond markets that also delivered double digit returns. That puts the onus on REITs to deliver credible, compounding earnings growth.

Why listed property still reads the real economy

Munzara made an important point about the economy that data often undercounts. A large informal sector feeds directly into retail and distribution performance, both of which are strongly represented in listed property cash flows. Industrial is increasingly geared to logistics rather than manufacturing which links it to consumption. Office reflects services sector health. Taken together, these channels make listed property a useful barometer of real activity provided investors look beyond share prices to the underlying cash generation.

Anderson summed up the outlook succinctly. Real dividend growth is returning for the first time in years as fundamentals improve, payout ratios normalise and interest rates ease. Add starting yields that remain elevated and double-digit total returns in the mid-teens are achievable on a three-to-five-year horizon.

The road ahead

The panel closed on a constructive note. Liquidity will always be lower than in banks or large caps and the sector will remain sensitive to capital cycles. Yet REITs have shown an ability to adapt. They have recycled assets, invested in operational efficiency, embraced renewable energy solutions and focused on tenant demand rather than speculative development. The result is a sector that is leaner, better governed and more attuned to investor needs.

For policymakers and city managers the message is equally clear. Credible local government, efficient basic services and predictable regulation are powerful enablers of REIT performance. For investors the takeaway is to focus on quality of cash flows, alignment of incentives and the discipline of capital allocation. For REIT executives it is to keep simplifying, keep standardising and keep telling the income compounding story that underpins the asset class.

Listed property is not the whole economy yet it remains a reliable barometer because it translates on-the-ground activity into cash that can be measured, distributed and reinvested. That is why a sector once written off in 2020 is again drawing interest. The signal from SAPOA 2025 is that the cycle has turned from repair to renewal. The work now is to turn renewed confidence into sustained, real returns.

Download Anderson’s presentation here.

SA REIT Conference 2026

The SA REIT Association’s biennial conference, proudly sponsored by Nedbank Corporate and Investment Banking’s Property Finance division, will take place on 12 February 2026 at The Houghton Hotel, Johannesburg.

This flagship event will convene REIT executives, investors, asset managers, policymakers and market experts to engage on the most pressing forces shaping the future of listed real estate. Topics will include global market volatility, access to capital, innovation, local government risks and the policy environment. With a focus on sector credibility and long-term investor relevance, the agenda promises strategic insight and practical direction.

A highlight will be the keynote address by Peter Verwer, Executive Chairman of Futurefy, titled Global REIT Dynamics: Innovation, Influence and Opportunity. He will explore how REITs worldwide are adapting to investor demands, digital transformation, sustainability imperatives and links to infrastructure and nation building. His perspective comes at a pivotal moment, following the relaunch of the Global REIT Alliance in Stockholm in September 2025.

Originally established in 2006 under the banner of the Real Estate Equity Securitization Alliance (REESA), the alliance has been revitalised under its new name to strengthen international collaboration, knowledge-sharing and industry advocacy. The SA REIT Association is a member of the Alliance.

Verwer’s address will provide valuable context for South Africa’s REIT sector within the global investment landscape.

Register here.

Peter Verwer to headline SA REIT Conference 2026

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Peter Verwer to headline SA REIT Conference 2026 as global REIT Alliance enters new phase

The SA REIT Association has confirmed that Peter Verwer, Executive Chairman of Futurefy and long-time global REIT ambassador, will deliver the keynote address at the SA REIT Conference 2026 on 12 February at The Houghton Hotel, Johannesburg.

The biennial conference, proudly sponsored by Nedbank Corporate and Investment Banking’s Property Finance division, is South Africa’s most influential gathering of listed property leaders, investors, policymakers and market experts. Against a backdrop of shifting global and local real estate dynamics, Verwer’s address will set the tone for a forward-looking exploration of how the REIT model is evolving worldwide.

Global REIT dynamics

Verwer’s keynote presentation, titled “Global REIT Dynamics: Innovation, Influence and Opportunity”, will examine how REITs across continents are adapting to investor demands, digital transformation, sustainability imperatives and their growing role in infrastructure and nation building. His insights will provide a rare global perspective for South African delegates, connecting local challenges to broader trends in capital flows, governance and long-term investment.

Crucially, his speech follows the relaunch of the Global REIT Alliance at the EPRA Conference in Stockholm in September 2025. Originally established in 2006 as the Real Estate Equity Securitization Alliance (REESA), the Alliance has been revitalised under its new identity to strengthen international collaboration, knowledge-sharing and industry advocacy. Today, it represents 24 countries and regions across North America, Europe, Asia-Pacific, Latin America and Africa, with the SA REIT Association included as South Africa’s voice in this global coalition.

Verwer underscores the significance of this expansion: “The Global REIT Alliance brings together 24 countries and regions, creating a unified voice for REIT advocacy and a platform for knowledge-sharing and standard-setting. Our shared vision is to broaden investor participation, improve transparency and strengthen trust in REITs as a credible global asset class.”

For South Africa, Alliance membership provides a direct line to international peers and policymakers. It allows local REITs and property leaders to learn from global best practice and at the same time contribute perspectives from an emerging market grappling with unique economic and regulatory challenges. As Verwer notes: “Together, we aim to strengthen the global REIT ecosystem and promote REITs as a trusted and transparent asset class worldwide.”

Setting the agenda for South Africa

The 2026 SA REIT Conference will tackle urgent themes shaping the sector, including global market volatility, access to capital, technological innovation, sustainability, local government risks and the shifting policy environment. With credibility and long-term investor relevance at the centre of discussions, the agenda is designed to provide strategic insight and practical direction for REIT executives and investors.

Verwer’s keynote will frame these issues within an international context, exploring how markets from the United States and Europe to Asia and Africa are positioning themselves for resilience. For South African REITs, which collectively represent a significant portion of the Johannesburg Stock Exchange and hold assets across retail, office, industrial and residential segments, his outlook will offer both inspiration and direction at a crucial juncture.

Local positives

After a period of economic pressure and subdued investor sentiment, renewed positivity is emerging in South Africa’s listed property sector. Signs of stabilisation in valuations, improving operational performance by leading REITs and a sharper focus on governance and transparency are helping to rebuild confidence. At the same time, international investors are showing a cautious but growing interest in South African assets, particularly as the local market aligns itself more closely with global REIT trends.

The SA REIT Conference 2026 will capture this mood of guarded optimism, convening executives, asset managers and policymakers to debate how the sector can consolidate its recovery and unlock future growth. By combining a global perspective, underscored by Peter Verwer’s keynote, with a local focus on practical strategies, the event will highlight how South Africa’s REITs are adapting to change and reasserting their relevance as a trusted investment class.

A landmark event

The SA REIT Conference has established itself as the premier platform for debate and networking in the property investment industry. With the inclusion of the SA REIT Association in the Global REIT Alliance, the 2026 edition is set to connect local strategies with global momentum more closely than ever before.

Register here.

Spear REIT posts inflation-beating HY2026 growth

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Regional focus pays off as Spear REIT posts inflation-beating HY2026 growth

Spear REIT delivered a strong set of interim results for the six months ended 31 August 2025, supported by stable operational and financial performance, disciplined capital allocation, and continued portfolio growth. The results reflect a period of measured expansion and strategic investment, with Spear remaining the only regionally focused REIT on the JSE, operating exclusively within the Western Cape.

 Key Highlights – HY2026

  • HY26 DIPS growth vs prior period: 5.21%
  • HY26 DPS growth vs prior period: 5.21% (based on 95% payout ratio)
  • Interim distributable income per share: 43.78 cents
  • Interim distribution per share: 41.59 cents (95% payout)
  • Portfolio value: R5.7 billion
  • Portfolio GLA: 487 317 m²
  • YTD collection: 98.96%
  • Occupancy: 95.03%
  • LTV: 13.85%
  • TNAV: R12.10 per share

CEO Quintin Rossi said the first half of the 2026 financial year demonstrated Spear’s ability to balance growth and stability while delivering strategy-aligned outcome from the core portfolio.

“Our exclusive Western Cape focus is a deliberate strategy – it gives us deep local market insight, agility in execution, and the ability to be in close proximity to our assets and tenants,” Rossi said. “The region’s economic resilience, governance quality, and sustained demand for real estate solutions from drivers of economic activity across the board continue to underpin the performance of the core portfolio.”

During the period, Spear concluded R1.074 billion in strategic acquisitions — namely Berg River Business Park (Paarl), Consani Industrial Park (Elsies River), and Maynard Mall (Wynberg). The transactions add over 137 000 m² of additional GLA and will take Spear’s total portfolio to around 624 000 m² once transfers are finalised between October 2025 and January 2026. Acquired at an average yield of 9.54%, all three assets are accretive, meet Spear’s strict investment criteria, and will contribute immediately to distributable income once transferred.

Rossi added: “These acquisitions further strengthen our industrial and retail exposure – sectors where we continue to see consistent tenant demand and strong rental growth potential. Our focus remains on high-quality, cash-generative assets that align with Spear’s long-term distribution and value growth objectives which may also include further portfolio acquisition opportunities within the region.”

Spear’s occupancy rate remained firm at 95.03%, supported by collection rates of 98.96%. Portfolio valuations increased by R107 million, reflecting a 2% uplift over the period. Rental reversions were positive at 1.31%, signalling sustained tenant confidence across the portfolio.

By February 2026, 67% of Spear’s portfolio will be equipped with embedded PV solar infrastructure in line with Spear’s sustainability strategy as the business seeks to place less reliance on fossil-fuel-generated electricity supply whilst harnessing the attractive rate of returns its PV solar portfolio generates.

The company’s loan-to-value ratio of 13.85% and R749 million equity raise in June 2025 provides Spear with dealmaking capacity while maintaining a conservative balance sheet profile.

“Our prudent capital structure gives us flexibility to pursue growth opportunities while maintaining distribution sustainability,” Rossi said. “Liquidity and investor confidence have improved meaningfully, with Spear now trading at one of the narrowest discounts to Net Asset Value in the South African REIT sector.”

In the broader context, the South African REIT market has remained resilient through 2025, with the sector delivering a 14% total return year-to-date, supported by moderating inflation and stable interest rates.

Within this landscape, Spear’s focused Western Cape strategy and consistent DIPS growth position it ahead of sector averages, and it is well-placed to capture ongoing regional upside.

Spear’s long-term strategy remains secured in its Western Cape-only focus, with the REIT aiming to scale to R15 billion in assets under ownership and a market capitalisation of R9 billion over the next decade. Its potential inclusion in the FTSE/JSE All Property Index in March 2026 is expected to further enhance liquidity and institutional participation.

 Outlook

Looking ahead, Spear reaffirmed its FY2026 full-year DIPS growth guidance of 4% to 6%, with a payout ratio maintained at 95%.

“We will continue to prioritise high occupancy, disciplined cost management, and accretive capital deployment,” Rossi concluded. “Our focus is on consistent, predictable growth and delivering long-term value for shareholders through a well-managed, regionally focused portfolio.”