Redefine’s retail portfolio in South Africa reported income growth as turnover in large tenant centres rebounded in line with convenience centres, and improving renewal reversions indicate a recovery in consumer confidence.
The company said consumer confidence would get a boost from a fiscally credible 2026 budget, especially one that avoids extra pressure on personal income taxes or spending.
“Turnover continues to be driven by grocery retailers even though growth slowed in the fourth quarter. Looking ahead, the group will focus on food and entertainment to boost experiential shopping and increase dwell time in centres,” the group said in its pre-close update for the year to end-February.
This approach mirrors the latest Clur shopping centre index, which shows shoppers increasingly favour sensory and experience-led offerings.
Meanwhile, the office sector remains uneven, but green shoots are emerging in specific nodes and assets, with asking rentals starting to rise for quality space. Demand is returning for well-located, premium and A-grade offices, and the portfolio is well-positioned to capture this momentum, it said.
According to the group, the industrial portfolio continues to stand out with occupancy holding firm at 97% and positive renewal reversions of 3.7%. New developments at Skyhawk Park and S&J Business Park are progressing as planned and are expected to deliver yields of more than 9%.
The group reported operating margins rose to 77.1% in the first quarter of the 2026 financial year, edging closer to its strategic medium-term target of 80%, and said it is on track to restore its earnings base.
However, water security remains a tougher challenge than energy, with sustainable supply relying not just on on-site efficiency, which has cut consumption by 7.3%, but on broader municipal infrastructure and service delivery.
“We were encouraged by recent announcements made by the government to elevate water security to a national priority, including greater engagement with the private sector, but stressed that timely and tangible interventions, particularly in Gauteng, are now critical,” the group said.
The pan-African shopping centre owner expanded its solar capacity by 23% to nearly 63MWp with solar now supplying 13.1% of total energy use. Electricity savings supported margins as the group advanced its wheeling initiatives as part of its sustainability drive.
In Poland, the retail platform of Redefine’s Echo Polska Properties (EPP) continues to perform steadily, with occupancy close to 100% and strong tenant retention. Logistics and self-storage remain selective growth areas as the broader strategy evolves.
Overall, the group said its discount to net asset value narrowed to about 18% from about 40% previously, improving access to capital markets. The recovery in its share price reflects renewed investor appetite for listed property.
The group’s loan-to-value remained within its 39%-41% target range. During the period, Redefine refinanced €324m (about R6.12bn) of EPP core debt over five years at a lower margin, reducing borrowing costs. In South Africa, it also refinanced R4.1bn in secured debt and unlisted notes at improved rates. The group holds R5.3bn in cash and undrawn facilities.
The group said it is increasingly harnessing AI across leasing, portfolio analytics and market intelligence, enabling faster, more precise responses to shifting tenant demand.
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