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Interim results for the six months ended 31 August 2025
EQUITES PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2013/080877/06)
Share code: EQU ISIN: ZAE000188843
Alpha code: EQUI
(Approved as a REIT by the JSE)
("Equites" or the "Company" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2025
SIX MONTHS IN REVIEW
Equites is a specialist, JSE-listed logistics REIT with a focus on high-quality, long-lease assets let to A-grade
tenants. The strategy of the Group remains centred on sustained growth in distributable earnings,
preservation of balance sheet strength and disciplined capital allocation.
In South Africa, this was a period of cautious optimism with inflation easing, increased public investment,
and a renewed focus on infrastructure. Despite these positive movements, a broad-based recovery has
yet to take place. GDP growth remained subdued, while inflation stayed comfortably at the bottom end
of the SARB's target range, allowing the central bank to ease policy and cut interest rates by a cumulative
50 basis points during the period. This, combined with persistent user-driven demand, bodes well for the
logistics real estate sector.
In the United Kingdom, this period was defined by persistent inflation, restrictive monetary policy, and
mounting fiscal pressures. Elevated government borrowing needs, investor concerns over long-term debt
sustainability and uncertainty about the timing of future rate cuts contributed to keeping 10-year gilt yields
at historically high levels. This, in turn, has kept the UK logistics property market in a state of relatively low
growth with no tightening of prime logistics yields over the period.
Operational momentum was maintained, with six leases concluded across c.107 000 m2. The like-for-like
portfolio rental growth amounted to 5.1% compared to the six months ended Aug-24 and valuations
increased by 4.0% compared to the last reporting date, Feb-25.
The Group's loan-to-value ("LTV") ratio is 37.2% at Aug-25, which has ticked up slightly from 36.0% at Feb-25
as a result of development expenditure and share repurchases. The Group's all-in cost of debt in SA
decreased by more than half a percentage point since Feb-25 to 8.3%.
This period has produced strong financial results underpinned by robust property performance. The Group
is pleased to report distribution per share ("DPS") of 69.04 cents per share and reaffirm distribution guidance
of between140.62 – 143.29 cents per share (5% – 7% growth) for FY26.
FINANCIAL AND OPERATIONAL HIGHLIGHTS FOR THE PERIOD
- Net asset value per share increased by 2.7% from R16.49 at 28 February 2025 to R16.93
- DPS of 69.04 cents per share, on track for full year guidance of 140.62 – 143.29 cents per share
- Distribution pay-out ratio of 100%
- R3.4 billion in cash and unutilised facilities
- LTV ratio of 37.2%
- Disposals of R0.7 billion concluded and transferred during 1H26
- Solar capacity at 27.0 MW
- Signed three Power Purchase Agreements
- Level 2 B-BBEE, with 78.0% black ownership
- 1.5% vacancy at Aug-25
KEY FINANCIAL HIGHLIGHTS
Unaudited Unaudited
six months six months
ended ended Change
31 August 2025 31 August 2024
Gross property revenue (R'000) 1 670 832 1 767 435 (5.5%)
Distributable earnings (R'000) 570 282 538 405 5.9%
Headline earnings per share (cents) 53.1 53.7 (1.0%)
Earnings per share (cents) 101.1 24.2 317.2%
Dividend declared per share (cents) 69.04 66.50 3.8%
Net asset value per share (cents) 1 693 1 632 3.7%
PROSPECTS
The Board reaffirms its FY26 earnings guidance, targeting a range of between 140.62 – 143.29 cents per
share. This outlook is supported by the strong performance of the underlying portfolio, with SA delivering
above-inflation like-for-like rental growth, positive rent reversions in the UK, and the continued tightening of
debt costs during the period.
Management continues to see slight upside risk to earnings in FY26, largely dependent on the timing of the
Aviva portfolio. The guidance further assumes no corporate failures, a stable GBP/ZAR exchange rate,
ongoing recovery of costs from tenants under the Group's triple-net lease structures, and has not been
audited or reviewed by the external auditors.
DECLARATION OF AN INTERIM CASH DIVIDEND
The Board has declared an interim gross dividend of 69.04215 cents per share on 8 October 2025 which is
an increase of 3.8% over the prior year interim distribution of 66.50 cents per share. The DPS is in line with
previous guidance of achieving between 140.62 and 143.29 cents per share for FY26.
Salient dates 2025
Last day to trade in order to receive a cash dividend Tuesday, 28 October
Shares trade ex-dividend Wednesday, 29 October
Record date to receive a cash dividend Friday, 31 October
Payment of cash dividend to certificated shareholders by electronic
funds transfer Monday, 3 November
Dematerialised shareholders' CSDP or broker accounts credited with
the cash dividend payment Monday, 3 November
Notes:
1. Shares may not be dematerialised or rematerialised between Wednesday, 29 October 2025 and
Friday, 31 October 2025, both days inclusive.
2. The above dates and times are subject to change. Any changes will be released on SENS.
Tax implications
Equites listed on the JSE as a REIT in line with the REIT structure as provided for in the Income Tax Act, No. 58
of 1962, as amended (the "Income Tax Act") and section 13 of the JSE Listings Requirements.
The REIT structure is a tax regime that allows a REIT to deduct qualifying distributions paid to investors, in
determining its taxable income.
The cash dividend of 69.04215 cents per share meets the requirements of a "qualifying distribution" for the
purposes of section 25BB of the Income Tax Act (a "qualifying distribution") with the result that:
- qualifying distributions received or accrued to SA 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 such qualifying distributions are distributed by a REIT. These qualifying distributions are
however exempt from dividends withholding tax in the hands of SA tax resident shareholders,
provided that such shareholders 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 declaration that the dividend is exempt from dividends tax; and
- 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 cease 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 abovementioned documents to be submitted prior to payment of the dividend, if
such documents have not already been submitted.
- qualifying distributions received by non-resident Equites shareholders will not be taxable as income
and instead will be treated as ordinary dividends which are exempt from income tax in terms of the
general dividend exemptions per section 10(1)(k)(i) of the Income Tax Act. Any qualifying
distributions received by non-residents from a REIT will be subject to dividends 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
dividends withholding tax will be withheld at a rate of 20%, the net dividend amount due to non-
resident shareholders is 55.23372 cents per share. A reduced dividend withholding rate in terms of
the applicable DTA, may only be relied upon 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 declaration that the dividend is subject to a reduced rate as a result of the application of a DTA;
and
- 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 cease 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 abovementioned documents to be submitted prior to payment of the
dividend if such documents have not already been submitted, if applicable.
Other information
- The issued ordinary share capital of Equites at the date of declaration is 825 990 801.
- Income Tax Reference Number of Equites: 9275393180.
The cash dividend may have tax implications for resident as well as non-resident shareholders. Shareholders
are therefore encouraged to consult their professional advisors should they be in any doubt as to the
appropriate action to take.
RESULTS ANNOUNCEMENT
This results announcement is the responsibility of the directors of Equites and the contents were approved
by the board on 8 October 2025. This results announcement contains a summary of the unaudited
condensed consolidated interim results for the six months ended 31 August 2025 ("full announcement")
released on SENS on 9 October 2025 and does not include full or complete details. Any investment decision
should be based on the full announcement available on the Company's website. None of the information
in this announcement has been reviewed or reported on by the Company's external auditors.
The results commentary, which includes directors' commentary, is available on the Company's website
https://equites.co.za/financial-results/#interim-results and can also be accessed using the following JSE
link: https://senspdf.jse.co.za/documents/2025/jse/isse/EQU/H12026.pdf.
9 October 2025
Sponsor Debt sponsor
Java Capital Nedbank Corporate and Investment Banking,
a division of Nedbank Limited
Date: 09-10-2025 08:00:00
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