Western Cape-focused Spear REIT Limited has delivered guidance-beating results for the financial year ended 28 February 2026, reporting a 6.02% year-on-year increase in both distributable income per share (DIPS) and distribution per share (DPS). The performance exceeds the company’s full-year guidance of 4% to 6% growth in the financial year and reflects the continued strength of Spear’s regional strategy and hands‑on asset management approach.
The results also mark a significant year for the REIT ahead of its upcoming 10-year anniversary as a listed company, with the group expanding its Western Cape portfolio beyond R7 billion through strategic acquisitions, robust financial performance and continued positive operational output across the portfolio.
Commenting during the presentation, Spear REIT CEO, Quintin Rossi, said,
“FY2026 has been a year that reflected disciplined execution by a great team driven by strategic operational, financial and investment clarity. We maintained an unwavering focus on top-line revenue growth, cost control and net operating income growth, while successfully delivering on our FY2026 growth objectives.”
FY2026 highlights:
- DIPS and DPS both increased by 6.02%, with FY2026 DIPS at 90.70 cents per share and DPS at 86.16 cents per share, exceeding guidance for the year.
- Total revenue increased by 23.25%, while net property operating profit grew by 20.53%.
- The portfolio value increased by 29.73% year-on-year to R7.18 billion, with Group TNAV rising by 5.42% to R5.38 billion, or R12.91 per share.
- The group generated R96 million in free cash flow from operations during FY2026.
- Spear concluded R1.074 billion in new acquisitions during the year.
- Portfolio occupancy remained strong at 97.28%, with collections of 99.33%.
- Renewals-only rent reversion came in at 6.02%, while total rent reversion was -2.28%.
- The portfolio’s weighted average lease escalation (WALE) was 7.04%, with total GLA increasing to 630 061 m².
- The balance sheet remained conservatively geared, with an LTV of 22.94%, an ICR of 4.34 times and liquidity availability of R382 million.
- Spear has guided for FY2027 DIPS growth of between 6% and 8% compared to FY2026.
The performance comes as Spear continues to execute its Western Cape-only strategy, focused on acquiring and actively managing high-quality, income-producing property assets across the industrial, retail, commercial and mixed-use sub-sectors.
The year included the acquisition of commuter-convenience retail centre Maynard Mall in Wynberg, while the group also recently announced the acquisition of Watergate Centre in Mitchells Plain. In total, Spear concluded more than R1 billion in acquisitions during FY2026, adding further scale to its retail and industrial exposure in the Western Cape and a further 137 000 m² of gross lettable area to its growing portfolio.
In June 2025, Spear raised R749 million in new equity, strengthening the group’s balance sheet and positioning it to take advantage of growth opportunities during FY2026. This resulted in the acquisition of Maynard Mall, Consani Industrial Park and Berg River Business Park, with the transactions totalling R1.074 billion in value.
“Our acquisition and development activity during FY2026 reflects a disciplined approach to growing the portfolio with high-quality, income-producing assets that align with Spear’s long-term investment strategy and delivers a core portfolio composition that can perform consistently through various economic cycles,” reported Rossi.
Spear’s Western Cape portfolio now spans 42 properties across the industrial, retail and commercial sectors, with total gross lettable area increasing to more than 630 000 m². Industrial assets remain the largest component of the portfolio, while the group also continued to advance development activity during the year, including progress at GTX Park in George.
“Spear’s geographical focus allows it to capitalise on the Western Cape’s comparatively resilient economic base, well-developed infrastructure and strong property fundamentals, driving sustainable long-term value creation for all stakeholders,” observed Rossi.
The group noted its Western Cape-focused strategy continued to benefit from semigration trends, infrastructure investment and comparatively strong economic fundamentals in the province.
Looking ahead, Spear signalled that it has a healthy pipeline of income-producing assets under consideration, with management targeting portfolio expansion of between R1 billion and R2 billion during FY2027. The company has guided for DIPS growth of between 6% and 8% for the 2027 financial year.
