Vukile Property Fund says it is on track to deliver at least 8% growth in funds from operations (FFO) and dividends per share for the full year, driven by a combination of strategic offshore expansion and resilient local retail performance.
In a pre-close trading update covering the five months to end-August, the specialist retail-focused REIT pointed to sustained operational strength across its portfolio of more than R50bn in assets, including significant gains from its recently integrated Iberian holdings.
Occupancy across the portfolio stands at 99%, with positive rental reversions and growth in footfall in both Spain and Portugal reinforcing momentum, it said.
Through Castellana Properties, its 99.5%-held Spanish subsidiary, Vukile acquired its fifth Portuguese asset, Forum Madeira, for €63m in April. Offshore assets now account for 65% of the group’s portfolio and 60% of net property income.
The group said in Iberia, occupancy remained near full capacity at 99%, with rental reversions of 3.4%, sales growth of 5.1% and footfall increases of 3%.
Vukile said like-for-like net operating income in the SA portfolio rose 8% year on year, vacancies stayed below 2% and positive rental reversions were recorded for a fourth consecutive year.
Township and rural malls led growth in trade and footfall, while cost efficiencies, including expanded solar PV capacity, reduced the cost-to-income ratio to 13%.
“Vukile has commenced financial year 2026 with robust and sustainable operational and financial strength. We remain open for business with an early-stage pipeline of deal opportunities, which will be subject to our disciplined capital allocation ensuring the deals we do are both strategically aligned and financially accretive,” CEO Laurence Rapp said.
The company will release an update on revised guidance when it releases results for the six months to end-September on November 26, it said.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.