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Unaudited Consolidated Financial Statements for the Six Months to 31 August 2025 and Cash Dividend Declaration
Collins Property Group Limited
(Registration number: 1970/009054/06)
Incorporated in the Republic of South Africa
JSE Share code: CPP ISIN: ZAE000152658
(Approved as a REIT by the JSE)
("Collins" or "the Company" or "the Group")
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS OF COLLINS PROPERTY GROUP
LIMITED FOR THE SIX MONTHS TO 31 AUGUST 2025 AND CASH DIVIDEND DECLARATION
HIGHLIGHTS
• Distributable income per ordinary share ("DIPS"): 63 cents for the six months ended 31 August
2025 (31 August 2024: 54 cents).
• Interim dividend: 52 cents per ordinary share declared (31 August 2024: 50 cents).
• Vacancy rate of 1.6%
• Weighted average lease expiry ("WALE"): 4.2 years.
• Collection rate of 99%.
• Loan-to-Value ratio in terms of SA REIT Best Practice: 51.8%.
• All in cost-to-income ratio in terms of SA REIT Best Practice: 20%.
FINANCIAL INDICATORS
Unaudited 31 August 31 August %
2025 2024 Increase/
(decrease)
Revenue excluding straight-line rental income 624 981 628 678 (0.6%)
(R'000)
Basic earnings per share in issue (cents) 57 54 5.6%
Headline earnings per share in issue (cents) 59 35 68.6%
Net asset value per share (cents) 1 631 1 501 8.7%
Interim dividend per share (cents) 52 50 4.0%
Net profit attributable to ordinary shareholders 218 092 120 787 80.60%
(R'000)
BUSINESS ENVIRONMENT
Global uncertainty brought about by continued conflicts in various parts of the world, international trade
tension between the East and West, coupled with a divided Government of National Unity with no clear
direction and poor service delivery all make capital investment decisions very difficult. These capital
allocations are harder to make when South Africa's real interest rate continues to run at 3% above the
long term average. On the plus side Eskom seem to have electricity supply under control, but not its
cost. The South African Reserve Bank appears to have a handle on inflation which is running at 3.3%.
Hopefully this translates into lower interest rates sooner rather than later which is much needed in an
economy battling to grow at more than 1%.
The new big buzz word is Artificial Intelligence (AI), our question is how does this affect property?
Things are changing so rapidly but it's hard to imagine life without brick and mortar, but that's not to say
our tenants needs of that brick and mortar won't change. Generally as tenants become more efficient
their need for space will reduce and this will be even more so as AI takes over multiple functions.
Properties need to have the flexibility to be modified to cater for these changing demands, hence our
focus on future proofing and as far as possible avoiding very tenant specific properties.
FINANCIAL PERFORMANCE
The small decline in revenue for the period was as the result of the disposal of non-core properties that
occurred between the reporting periods.
The Group reported a total distributable income of R206.8 (August 2024: R177,1m) for the six months
ended 31 August 2025.
Total assets now amount to R13.4 billion (August 2024: R12.1 billion).
Net asset value per share stands at R16.31 compared to R15.01 in August 2024.
A loan-to-value ratio of 51.8% in terms of SA REIT Best Practice was achieved as well as an all-in cost-
to-income ratio of 20%.
BALANCE SHEET
In the balance sheet at 31 August 2025 there are 3 line items that have extra ordinary movements in
them that need further explanation. They are Loans Receivable R319m, cash R991m and short-term
borrowings R1 455m.
As a South African company investing in the Netherlands we need SARB approval to externalise Rands.
We experienced significant delays in obtaining this approval, which eventually came through on 18
August 2025. However, in order to meet the timelines set out in the agreements we had to make use
of the asset swap mechanism in order to externalise Rands for the Netherlands investment. The effect
of the asset swap was to add R310m to Loans receivable and R310m to Short-term borrowings.
The Netherlands transaction was due to close 1 September 2025 so the cash used to fund the deal
needed to be available by 31 August 2025 which resulted in the large cash balance at the end of the
period. Short term debt of R542m was incurred for this same transaction.
Now that the SARB approval is in place the asset swap will be unwound removing the R310m Loan
receivable and corresponding short term debt. As of 1 October 2025, the date the transaction closed,
approximately R740m moves from cash into Investment properties. We also are in the process of
converting the short term debt into long term debt.
OPERATIONAL PERFORMANCE
Some of the key highlights of the Group's operational performance over the last six months are detailed
below.
In South Africa the leasing team maintained an extremely satisfactory overall vacancy rate of 1.2%.
Only 0.8% of our industrial portfolio is vacant, 0.82% of the retail portfolio is vacant whilst 17.3% of our
offices remain vacant. Even though offices only makes up 7% of the portfolio, the focus of the Group to
sell down this asset class.
Collection rate of all income due for the period was 99%. Our WALE at 4.2 years, historically measured
by area, continues to decline but this will improve by an estimated 6 months, when measured by income,
in the next reporting period. This will come about as we follow the strategy of disposing assets in South
Africa with shorter dated leases and investing in properties in the Netherlands with 14 year leases.
During the reporting period we continued to sell down non-core properties. Properties valued at R125
million were transferred in the first six months. There is another R960m worth of properties that have
been sold and are awaiting transfer.
The net proceeds from these disposals have been reinvested into properties in the Netherlands. These
acquisitions which entailed the purchase of 8 properties took place on 1 October 2025, 95% of these
properties are occupied by Intergamma, the third largest hardware operator in the Netherlands, on new
triple net leases with an average term of 14 years.
As a Group we have been focusing on future proofing our income streams, obviously investments with
long dated WALE is one way of achieving this. The development of a convenience shopping centre in
Paarl, due to start trading in December, will have a WALE of 9 years. In Somerset West, a property held
by an associate, the penultimate phase of our shopping centre redevelopment, has completed and the
WALE for this property is 6.5 years.
In Namibia the sale of 6 000m² of office space was finalised and the property will transfer once the
building is sectionalised. The value of vacant land in Windhoek was unlocked by the sale and transfer
of a 2 500m² office block and 85% of the second office tower has been let. 50% of our shopping centre
in Windhoek has undergone a redevelopment during this reporting period and the completed centre is
ready for the December trade.
In Europe, the acquisition of the 8 hardware stores located in the Netherlands was finalised and these
properties transferred on 1 October. One of the two office buildings co-owned in the Netherlands was
sold. We are continually looking to re-invest in Europe and our physical presence there is now starting
to pay off.
ORDINARY SHARE CASH DIVIDEND
The board of directors of Collins has approved, and notice is hereby given, of an interim dividend of 52
cents per share for the six months that ended 31 August 2025. The dividend is payable to Collins
shareholders in accordance with the timetable set out below:
Last date to trade 'cum' dividend Tuesday, 18 November 2025
Shares trade ex-dividend Wednesday, 19 November 2025
Record date Friday, 21 November 2025
Payment date Monday, 24 November 2025
Share certificates may not be dematerialised or rematerialised between Wednesday, 19 November
2025 and Friday, 21 November 2025, both days inclusive.
In respect of dematerialised shareholders, the dividend will be transferred to the Central Securities
Depository Participant accounts/ broker accounts on Monday, 24 November 2025.
Certificated shareholders' dividend payments will be paid on or about Monday, 24 November 2025.
Dividend tax treatment
In accordance with Collins' status as a REIT, shareholders are advised that the dividend of 52 cents per
share for the period ended 31 August 2025 ("the dividend") meets the requirements of a "qualifying
distribution" for the purposes of section 25BB of the Income Tax Act, 58 of 1962 ("Income Tax Act"). The
dividend will be deemed to be a dividend, for South African tax purposes, in terms of section 25BB of
the Income Tax Act.
The dividend received by or accrued to South African tax residents must be included in the gross income
of such shareholders and will not be exempt from income tax (in terms of the exclusion to the general
dividend exemption, contained in paragraph (aa) of section 10(1)(k)(i) of the Income Tax Act) because
it is a dividend distributed by a REIT. This dividend is, however, exempt from dividend withholding tax
in the hands of South African tax resident shareholders, provided that the South African resident
shareholders provide the following forms to their CSDP or broker, as the case may be, in respect of
uncertificated shares, or the Company, in respect of certificated shares:
a) a declaration that the dividend is exempt from dividends tax; and
b) a written undertaking to inform the CSDP, broker or the Company, as the case may be, should the
circumstances affecting the exemption change or the beneficial owner ceases to be the beneficial
owner,
both in the form prescribed by the Commissioner for the South African Revenue Service. Shareholders
are advised to contact their CSDP, broker or the Company, as the case may be, to arrange for the
above-mentioned documents to be submitted prior to payment of the dividend, if such documents have
not already been submitted.
Dividends received by non-resident shareholders will not be taxable as income and instead will be
treated as an ordinary dividend which is exempt from income tax in terms of the general dividend
exemption in section 10(1)(k)(i) of the Income Tax Act. Any distribution received by a non-resident from
a REIT will be subject to dividend withholding tax at 20%, unless the rate is reduced in terms of any
applicable agreement for the avoidance of double taxation ("DTA") between South Africa and the
country of residence of the shareholder. Assuming dividend withholding tax will be withheld at a rate of
20%, the net dividend amount due to non-resident shareholders is 41.6 cents per share. A reduced
dividend withholding rate in terms of the applicable DTA may only be relied on if the non-resident
shareholder has provided the following forms to their CSDP or broker, as the case may be, in respect
of uncertificated shares, or the Company, in respect of certificated shares:
a) a declaration that the dividend is subject to a reduced rate as a result of the application of a DTA;
and
b) a written undertaking to inform their CSDP, broker or the Company, as the case may be, should the
circumstances affecting the reduced rate change or the beneficial owner ceases to be the beneficial
owner,
both in the form prescribed by the Commissioner for the South African Revenue Service. Non-resident
shareholders are advised to contact their CSDP, broker or the Company, as the case may be, to arrange
for the above-mentioned documents to be submitted prior to payment of the dividend if such documents
have not already been submitted, if applicable.
Shares in issue at the date of declaration of this dividend: 334 097 767
Collins' income tax reference number: 9725/126/71/9.
OUTLOOK
As we head into the last 6 months of this financial year we do so with a sense of optimism. We have
spent years selling down our non-core assets to free up equity for reinvestment and we are now
reinvesting that equity. Our geographical and currency diversification into the Western Cape and
mainland Europe is gaining momentum and we are seeing more and more deal flow. This diversification
is expected to improve our security of income over the longer term. As we enhance the quality of the
portfolio, it will enable us to focus on the cost of debt, which, together with falling interest rates bodes,
well for enhancing long term returns for shareholders.
SHORT-FORM ANNOUNCEMENT
The contents of this announcement is the responsibility of the board of directors of Collins. This
announcement is only a summary of the information contained in Collins' group unaudited financial
statements for the six months to 31 August 2025 ("2025 Interims") and does not include full or complete
details. Any investment decisions by investors and shareholders should be based on consideration of
the full 2025 Interims published on SENS on Friday, 31 October 2025.
Collins' full 2025 Interims have been released on SENS and are available on the JSE website at:
https://senspdf.jse.co.za/documents/2025/jse/isse/ccpe/ie2025.pdf.
Collins' full 2025 Interims, which includes directors' commentary, has been published on the Company's
website at: https://collinsgroup.co.za/interim-results/interim-results-2026/.
Copies of the 2025 Interims may be requested via email to cppcosec@leacorporateservices.co.za or
query@collinsprop.co.za.
K Collins G C Lang
Chairman Director
31 October 2025
Sponsor: Questco Corporate Advisory (Pty) Ltd
Date: 31-10-2025 09:00:00
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