Accelerate Property Fund has turned a corner at Fourways Mall, with strong leasing momentum driving vacancies down from 17.9% last year to 10.7% by end-September.
The mall’s appeal has been boosted by the arrival of Walmart last week, cementing its status as a leading retail destination and underscoring the strength of tenant demand in the centre.
“During the six months, Fourways Mall successfully filled 10,544m² of vacant space and concluded renewals on 17,182m², representing strong take-up across retail categories,” the group said in its results for the six months to end-September.
The fund also invested R69m in capital improvements aimed at modernising the mall and enhancing operational efficiency — investments that are already showing results.
The group’s broader portfolio is following a similar trajectory, with vacancies falling to 15.1% from 21.7% a year earlier, highlighting the effectiveness of the fund’s proactive leasing strategy and its ability to attract and retain tenants across its assets, it said.
Revenue rose R59.4m lifted by an R82.5m insurance settlement from a business interruption claim, stronger commercial rental and parking income, and lower vacancies at Fourways Mall.
The group reported a profit after tax of R49.2m for the period, rebounding from a loss of R255.5m in the prior interim period. This translates into South Africa Reit funds from operations of 2.81c per share compared with a loss of 3.97c in the 12 months to March 2025, it said.
Diposals of Eden Meander in June last year and Cherry Lane in February weighed on retail rentals, though recoveries remained steady at R113.9m, matching the previous period, it said.
Lease renewals showed a mixed picture, with about two-thirds of agreements recording positive rental growth averaging close to 9%.
Property expenses fell R15.5m, helped by lower electricity and rates following asset disposals and solar savings at Cedar Square. Other operating costs dropped by R8.4m while finance costs fell R28.4m, reflecting debt repayments from asset sales and the R100m rights issue concluded in July.
Related-party debt, previously fully impaired at R1.1bn, was reversed and formally written off by September 30 after legal action, with R80.6m of the movement reflecting the VAT portion of the earlier impairment, it said.
Key priorities remain completing approved disposals, sustaining leasing momentum at Fourways Mall, improving income quality, and further strengthening the balance sheet.
— Accelerate Property Fund
The group’s loan-to-value ratio improved to 47.1%, down from 48.3% in March, driven by asset disposals and the rights issue, which lifted the group’s largest shareholder’s stake to more than 50%.
During the period, two assets were sold, cutting the group’s debt by R62.4m Additional disposals approved post-period, including Portside, Pri-Movie Park, Beacon Isle, Valleyview and 73 Hertzog Boulevard, are expected to transfer by January, reducing the group’s debt by a further R719.1m.
Looking forward, the group said it expects earnings to stabilise in the 2026/2027 financial year provided the macroeconomic environment remains stable. The benefits of disposals, improved gearing and operational optimisations are set to continue flowing through.
“Key priorities remain completing approved disposals, sustaining leasing momentum at Fourways Mall, improving income quality, and further strengthening the balance sheet,” the group said.
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