Owner of Alex Mall Exemplar REITail reported strong revenue growth driven by an increase in rental and recovery income which rose from R1.22bn to R1.33bn compared with the previous year.
The increase in rental income, combined with lower interest rates, boosted Exemplar’s final payout to shareholders by 11.4%, highlighting the improved performance of its township-based properties, the group said in its results for the year to end-February.
The group’s net asset value rose by 13.2%, while it reported a full-year distribution of 153.4c per share and a 25.4% increase in headline earnings per share to 142.32c.
CEO Jason McCormick highlighted that its centres in Gauteng, particularly those in Soweto, were the top performers, benefiting from sustained rural-to-urban migration, which continued to boost foot traffic and demand in these areas.
“We strategically focused on Gauteng due to strong rural-to-urban migration into areas like Mamelodi, Soshanguve and Thembisa, with similar trends in KwaZulu-Natal. Informal backyard accommodation by landlords is driving increased retail sales in these regions,” McCormick said.
During the year, the group acquired Eerste Rivier Mall in Cape Town for R282m, with this property becoming the top-performing centre in the portfolio by December. It also developed Mbhashe Mall in iDutywa in the Eastern Cape.
The company reported its loan-to-value ratio rose slightly to 38.6%, within the industry average of 40%.
Exemplar has a portfolio of 27 assets with an additional six under management and maintains low vacancies at 3.5%.
McCormick said he looked forward to the development of Vuwani Mall in Thohoyandou, Limpopo, with Boxer and Shoprite already signed up as tenants. The project is expected to contribute to social development in the communities.
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