SA Corporate Real Estate is upbeat about maintaining inflation-beating growth despite heightened global uncertainty.
Even as geopolitical tensions continue to unsettle markets, the group remains cautiously confident that conditions will stabilise.
It says a strong tenant base and a steady focus on property fundamentals will continue to support performance, while it also pushes to build a bigger presence in the residential rental market, its annual report reads.
The group said that like-for-like net property income growth in South Africa is expected to exceed inflation forecasts, while its Zambian portfolio is set to deliver strong growth.
“Our residential platform remains a key strategic focus and competitive advantage. Since the Afhco and Indluplace acquisitions, it has scaled meaningfully into a fully integrated management and sales platform, further strengthened by the addition of 2,000 units through The Parks transaction in December 2025. The deal has increased our exposure to residential, aligning with our positive outlook for suburban lifestyle estates,” the group says.
While the group has not provided earnings guidance for 2026, it says strong operational metrics continue to underscore the resilience of its portfolio. It highlights robust collections of more than 98%, occupancy levels of 94.5%-100% across its portfolios, and sustainable rental growth achieved over the year.
Following the Parks acquisition, SA Corp’s residential exposure has risen to 49% of total assets, with the rest spread across retail, offices and other property segments.
However, according to the latest MSCI South Africa real estate annual index, the residential sector was the only sector to deliver a lower return than in 2024.
Infrastructure risks also remain a concern for the group, particularly regarding water and energy in Gauteng. In response, solar PV generation increased by 15% to 18,066 MWh during the year, with additional measures such as boreholes and water-saving initiatives under way.
“South Africa’s multifamily residential rental sector has continued to mature into a core institutional asset class, supported by structural demand, resilient occupancy levels and strong rental collections,” the group says.
“A sustained shift towards renting, driven by affordability pressures, lifestyle flexibility and ongoing urbanisation, has underpinned demand for professionally managed rental accommodation.”
Bluff Towers Shopping Centre and Nobel Street Office Park in Bloemfontein are among the properties marked for disposal as the group refines its retail portfolio to focus on convenience-orientated centres.
Bluff Towers was contracted for sale at R544.6m at an exit yield of 9.3%, while Nobel Street Office Park is set to be sold for R45.3m.
The group’s share price is trading at about R3 and is down more than 7% year to date.
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