Fairvest is entering the 2026 financial year with renewed confidence, buoyed by a macroeconomic backdrop that is finally tilting in its favour.
The owner of the Soshanguve Southview Centre said its portfolio remains resilient, underpinned by low vacancies, an improving tenant mix, and firm like-for-like income growth across all sectors. This was highlighted in its commentary on the second half of its full-year results to end-September.
“The stabilisation of the national electricity grid, easing inflation, and a more favourable interest rate environment have all contributed to a gradual improvement in operating conditions,” the group said.
“However, persistent municipal service-delivery challenges and a still-fragile macroeconomic backdrop continue to pose risks. Even so, the portfolio remains resilient and well positioned for further growth.”
The stabilisation of the national electricity grid, easing inflation, and a more favourable interest rate environment have all contributed to a gradual improvement in operating conditions
— Fairvest
Profit for the group’s shareholders rose to R1.5bn, with headline earnings per A share at 144.27c.
The group reported like-for-like net property income growth of 5.8%, while vacancies fell to 4.1%. Positive rental reversions of 4.8% were recorded, and the loan-to-value ratio tightened to 25.6%.
The group invested R288.9m into its properties, with R33.8m going into solar projects. Property expenses rose 2.6% despite sharp municipal increases.
Looking ahead, Fairvest expects distributable earnings per B share to be 52.5c-53.4c for the 2026 financial year, representing growth of 9%-11%. Distributable earnings per A share are forecast to increase by the lower of 5% or the most recent consumer price index. The group declared distributions of 142.57c per A share and 48.15c per B share for the year.
“The outlook reflects steady operational gains and a stronger portfolio, with the board confirming a 100% dividend payout ratio,” the group said.
During the period, Fairvest increased its stake in Dipula Properties from 5% to 26.3% by acquiring 193.8-million shares in exchange for 203.7-million B shares. This made Fairvest Dipula’s largest shareholder with significant influence. A new share issue in September 2025 reduced Fairvest’s holding to 23.6%, from which it received dividends of R123.3m for the year.
The group’s balance sheet includes an interest cover ratio of at least 2.8 times, a loan-to-value ratio of 25.6%, and R1.3bn in cash and undrawn debt facilities.
During the period, Fairvest acquired seven retail properties valued at R1.15bn. Thembalethu Square, Shoprite Manguzi, Ulundi and Nquthu Shopping Centre have already transferred, while Eyethu Junction, Jozini Mall and Tugela Ferry Mall are expected to transfer in the new financial year.
In addition, three industrial and office assets were disposed of for a total of R99m.
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