Spear’s commercial portfolio gained momentum as the Western Cape office market leads a national recovery.
Limited premium space and slow new development in the province are driving demand, positioning the Reit for rental growth.
The Western Cape-focused group is benefiting from the province’s economic upswing, driven by the government’s investment in infrastructure, jobs, and energy security — factors boosting investor interest and regional resilience.
In its results for the year to end-February, the group reported occupancy of almost 93% in its office portfolio, up from 84% a year earlier.
For the year, the group’s distributable income per share rose 3% to 85.55c and total distributions increased to 81.27c. Rental collections remained close to 100% and the board maintained a 95% payout ratio for the second half.
Despite a tough trading environment riddled with challenges such as load-shedding, crime, and high unemployment, the group remains upbeat as the SA listed property sector has recovered well — outperforming bonds, equities and cash for two years, supported by a softer interest rate environment.
The group expects a 4%-6% increase in distributable income per share for this financial year and aims to maintain its payout ratio.
Spear reported a 3.57% increase in its net asset value per share, to R12.20. This was boosted by the successful completion of 13 acquisitions worth R1.15bn.
The company’s share price has increased by 25% over the past year, reflecting strong investor confidence, while occupancy across its core portfolio rose to 97%.
Spear’s retail assets saw occupancy rates of 96.05%, while the industrial portfolio remained resilient, with an almost 100% rental collection rate.
The group reported an overall rental reversion of 4.18%, supported by a low loan-to-value ratio of 27.09%.
CEO Quintin Rossi said he remained confident that the company’s strategic focus on the Western Cape, with a proactive approach to portfolio management, would continue to drive sustainable value for shareholders.
He said investors could expect “consistent asset value growth and a sustainable, credible and predictable financial and operational performance”.
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