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.”
