Vukile’s property portfolio has breached the R50bn mark for the first time in the group’s history, with 65% of these assets outside SA.
The company closed the year to end-March with an investment portfolio of 33 urban, commuter, township and rural malls in SA, 15 shopping centres and retail parks in Spain and five shopping centres in Portugal.
Its Spanish assets are held in the Madrid-listed subsidiary Castellana, in which Vukile has a 99.5% interest. Castellana has about R33bn in assets.
“During the year, Vukile grasped a golden window of opportunity that expanded its Iberian direct asset base by nearly 60%, consolidating its footprint across two of Europe’s most resilient consumer economies,” the group said, after the release of its annual results.
“Now, 65% of the group’s assets and an expected 60% of its net property income is derived offshore.”
Valued at R16.7bn, Vukile describes its SA portfolio as “defensive”.
Vukile reported gross property revenue of R4.4bn for the year to end-March, up 9.4%, while profit more than doubled to R3.2bn.
Headline earnings per share (HEPS) were 20.7% higher at 158.59c and total funds from operations amounted to 158.8c. A final dividend of 76.5c per share was declared for the year.
The group said the 2025 financial year had been a transformative year, highlighting the company’s focused growth strategy in action.
The group expects to deliver growth in funds from operations (FFO) and dividend per share of at least 8% for the 2026 financial year, after reporting a 6% rise in dividend in 2025.
Vukile CEO Laurence Rapp said Castellana’s on-the-ground presence and expertise has added substantial value to the Iberian portfolio.
“This year has been one of rapid growth in the region, and our priority is to crystallise potential in our newly acquired assets and deepen value within our existing footprint,” he said.
“Vukile is in a strong position, underpinned by a clear strategy, a proven operating platform, a strong balance sheet, high-quality assets and disciplined capital management.”
In its SA portfolio, the group reported like-for-like retail net operating income growth of 6.4% with retail vacancies lowered to 1.7%. The like-for-like retail portfolio value increased by 8.5%. It installed 36MWp of solar power, which generates 27% of electricity in the portfolio.
In Spain and Portugal it reported portfolio occupancy of 98.4% and positive rental reversions of 17.3%, with 95% of retail space let to international and national tenants.
During the year the group acquired and repositioned the Mall of Mthatha. In its Iberian portfolio, it exited from Lar Espana, generating a capital gain of €82m and acquired four shopping centres in Portugal for a combined value of €260m. It also acquired the flagship Bonaire Shopping Centre in Valencia, Spain, for €305m.
Post year-end Vukile acquired Forum Madeira in Portugal for €63m.
The corporate activity during the year laid a strong foundation for continued growth, the group said.
For the year to end-March 2026, Vukile’s upgraded expectation and guidance is to deliver growth in FFO per share and dividend per share of at least 8%, equating to FFO per share of at least 171.5c and a full-year dividend per share of at least 142.2c.
Independent property analyst Keillen Ndlovu said: “Over the past few years, Vukile has been the most proactive Reit in looking for opportunities, with its offshore expansion, capital allocation and equity and debt issuances through the bond market.”
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