Vukile Property Fund upgrades growth forecast, plans R5bn investment

VUKILE Property Fund has upgraded its full year guidance and has a strong pipeline of potential new property deals that may see it spend R5 billion of cash over the next six months of its 2026 financial year, CEO Laurence Rapp said Wednesday.

- EDWARD WEST

VUKILE'S Randburg Square shopping mall. The REIT's South African portfolio continued to deliver consistent outperformance in the six months to September 30, 2025, benefiting from driving operational efficiencies, and an improved macroeconomic environment.

The group, which holds 53 assets between South Africa, Portugal and Spain, on Wednesday reported a 9% increase in half-year dividend per share (DPS), while guidance for the 2026 year was now at least 9% growth in dividend per share and funds from operations (FFO). Previously the forecast was for around 6% growth in the two metrics.

About two-thirds of Vukile's assets and net property income are generated in two of Europe's major economic drivers, Spain and Portugal, through its 99.6%-held subsidiary, Castellana Properties.

The countries are among the strongest growing economies in Europe at present, while the group's South African retail portfolio is also focused on a "sweet spot" in the South African market, on township, rural, urban, and commuter malls, said Rapp.