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Audited Consolidated Financial Statements of Collins for the Year Ended 28 February 2026 & Distribution Declaration
Collins Property Group Limited
(Registration number: 1970/009054/06)
Incorporated in the Republic of South Africa
JSE Share code: CPP ISIN: ZAE000152658
(Approved as a REIT by the JSE)
("Collins" or "the Company")
AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF COLLINS PROPERTY GROUP FOR
THE YEAR ENDED 28 FEBRUARY 2026 AND DISTRIBUTION DECLARATION
HIGHLIGHTS
- Distribution per share growth of 17% year on year.
- Distributable income per ordinary share ("DIPS") of 123 cents (28 February 2025: 109 cents)
for the year ended 28 February 2026.
- Pay-out ratio of 95% (28 February 2025: 92%).
- Final distribution of 65 cents per ordinary share declared, comprising of a normal dividend of
54 cents and a return of capital of 11 cents per ordinary share (28 February 2025: 50 cents).
- Vacancy rate of 1.7% (28 February 2025: 1.8%).
- Weighted average lease expiry ("WALE") of 4.8 years (28 February 2025: 3.9 years).
- Collection rate of 99.3% (28 February 2025: 99.9%).
- Loan-to-value ratio of 49.2% (28 February 2025: 49.8%) in terms of SA REIT Best Practice.
- All in cost-to-income ratio of 21% (28 February 2025: 18%).
FINANCIAL INDICATORS
Audited 28 February 28 February % Increase
2026 2025
Revenue excluding straight-line rental income 1 248 053 1 247 886 0%
(R'000)
Net asset value per share (cents) 1 771 1615 10%
Basic earnings per share in issue (ZAR) 2.88 1.69 70%
Headline earnings per share in issue (ZAR) 1.65 0.45 267%
Distribution per share (cents) for the year ended 117 100 17%
Profit from continuing operations before non- 947 805 572 976 65%
controlling interest (R'000)
BUSINESS ENVIRONMENT
In a very uncertain world, the only certainty is that things will keep changing, the major difference now
is the speed at which things change and its unpredictable nature. Most news feeds nowadays are
dominated by one conflict or another, and as we live in an inter connected world where wars have global
impacts. The knock-on effects brought about by disrupted supply chains comes in the form of higher
energy costs adding inflationary pressure. Unfortunately, the expectation of reduced interest rates in
2026 have been significantly diminished as central banks look to hold or increase rates to combat these
inflationary pressures. Elevated costs including financing costs reduces demand and limits growth
which is so badly needed in South Africa.
Despite these challenges we have, and will continue building a robust portfolio that can deliver returns
to shareholders through the various cycles.
FINANCIAL PERFORMANCE
Profit from continuing operations before non-controlling interest was R948 million (28 February 2025:
R572 million). The profit was impacted by the raising of a deferred tax asset on historical losses in our
Luxembourg holding company in the amount of R216 million. This asset was raised based on our
offshore expansion and the ability to show future forecasted profit in the portfolio. Revenue was constant
for the period due to the sell off of non-core assets, however operating profit increased by 8% year on
year due to the realisation of sold properties at higher than their book value. Finance cost decreased
by R35 million because of lower interest rates.
The above factors (being the deferred tax asset and lower finance costs) have resulted in the increase
of basic and headline earnings per share.
The Company reported a net profit attributable to shareholders of R949 million, compared to the
corresponding year's net profit of R557 million for reasons mentioned above.
The distributable income grew by 12% from R360m in 2025 to R406m in 2026 as calculated in terms
of REIT Best Practice.
Total assets now amount to R12 914 million (28 February 2025: R12 198 million).
One of the key metrics in the statement of financial position is the loan to value ("LTV") ratio which has
come down to 49% (28 February 2025: 50%) in terms of the REIT Best Practice measurement criteria.
This we believe is off conservative valuations as demonstrated by historically selling properties at or
above book values including lease cancellation fees. During the year under review, we also ran
developments that were majority bank funded and recycled equity into our European portfolio as
discussed under operational performance. Investment Properties were only written up by 2.3% in the
current year well below the average inflation rate.
The other two metrics worth looking at are the net asset value ("NAV") per share which has increased
by 10% to R17.71 as of February 2026, and the shareholders total return for the year of R2.88/share,
representing a 16.2% return on NAV or 27% on the year end closing share price.
OPERATIONAL PERFORMANCE
Proactive property management has led to total vacancy rates dropping to 1.7% off an already very low
base of 1.8% in 2025.
The portfolio WALE measured on income value is 4.8 years compared to 3.9 years in 2025.
Rent collections remained strong collecting 99% of income due.
The cost to income ratio of the Group was 21% in 2026 compared to 18% in 2025. This increase is due
to a once off repair and maintenance cost incurred in the 2026 year end.
A strong focus over the last few years has been to replace non-core assets into hard currency assets
in Europe. During the year under review, we sold 12 properties in low growth areas, at above book
values, generating R682 million in surplus cash. A portion of this cash was used to acquire a portfolio
of 8 properties occupied by Intergamma, a leading DIY operator in the Netherlands, which signed triple
net leases with a combined WALE of 14 years. We will continue to sell down our exposure to offices
and assets in Mozambique where we only have two assets left, one of which is expected to transfer in
June 2026.
On the development front, the Company also continued with its redevelopment of a 17 600m²
convenience retail centre in Somerset West, the final phase of which will be completed September
2026. Phase 1 of an 18 500m² convenience retail centre in Paarl was opened in November 2025 with
phase 2 completing in May 2026. The combined value of these developments is in excess of R1 billion.
Adjacent to the Paarl Winelands Mall we have commenced the development of a Virgin Active gym on
a new 15 year lease, which is due to open mid-2027. In Namibia a 9 000m² shopping centre
redevelopment was completed and vacant land in which we have a 25% stake was developed out and
has either been sold or let.
In all that we do, we try very hard to keep our properties generic in nature and not too tenant specific
which gives us the flexibility when re-tenanting is needed. This future proofing is vital as tenant demands
are forever changing.
DECLARATION OF DISTRIBUTION
The board of directors of Collins has approved and notice is hereby given of a final distribution of 65
cents per share for the year ended 28 February 2026. This distribution comprises of a final REIT
dividend distribution of 54 cents per share and a return of capital of 11 cents per share. The distribution
is payable to Collins shareholders in accordance with the timetable set out below:
Last date to trade 'cum' dividend Tuesday, 2 June 2026
Shares trade ex dividend Wednesday, 3 June 2026
Record date Friday, 5 June 2026
Payment date Monday, 8 June 2026
Share certificates may not be dematerialised or rematerialised between Wednesday, 3 June 2026 and
Friday, 5 June 2026, both days inclusive.
In respect of dematerialised shareholders, the distribution will be transferred to the Central Securities
Depository Participant accounts/broker accounts on Monday, 8 June 2026.
Certificated shareholders' distribution payments will be paid on or about Monday, 8 June 2026.
Dividend tax treatment
In accordance with Collins' status as a REIT, shareholders are advised that the dividend of 54 cents per
share for the year 28 February 2026 ("the dividend") meets the requirements of a "qualifying distribution"
for the purposes of section 25BB of the Income Tax Act, 58 of 1962 ("Income Tax Act"). The dividend
will be deemed to be a dividend, for South African tax purposes, in terms of section 25BB of the Income
Tax Act.
The dividend received by or accrued to South African tax residents must be included in the gross income
of such shareholders and will not be exempt from income tax (in terms of the exclusion to the general
dividend exemption, contained in paragraph (aa) of section 10(1)(k)(i) of the Income Tax Act) because
it is a dividend distributed by a REIT. This dividend is, however, exempt from dividend withholding tax
in the hands of South African tax resident shareholders, provided that the South African resident
shareholders provide the following forms to their CSDP or broker, as the case may be, in respect of
uncertificated shares, or the Company, in respect of certificated shares:
a) a declaration that the dividend is exempt from dividends tax; and
b) a written undertaking to inform the CSDP, broker or the Company, as the case may be, should
the circumstances affecting the exemption change or the beneficial owner ceases to be the
beneficial owner,
both in the form prescribed by the Commissioner for the South African Revenue Service. Shareholders
are advised to contact their CSDP, broker or the Company, as the case may be, to arrange for the
above-mentioned documents to be submitted prior to payment of the dividend, if such documents have
not already been submitted.
Dividends received by non-resident shareholders will not be taxable as income and instead will be
treated as an ordinary dividend which is exempt from income tax in terms of the general dividend
exemption in section 10(1)(k)(i) of the Income Tax Act. Any distribution received by a non-resident from
a REIT will be subject to dividend withholding tax at 20%, unless the rate is reduced in terms of any
applicable agreement for the avoidance of double taxation ("DTA") between South Africa and the
country of residence of the shareholder. Assuming dividend withholding tax will be withheld at a rate of
20%, the net dividend amount due to non-resident shareholders is 40 cents per share. A reduced
dividend withholding rate in terms of the applicable DTA may only be relied on if the non-resident
shareholder has provided the following forms to their CSDP or broker, as the case may be, in respect
of uncertificated shares, or the Company, in respect of certificated shares:
a) a declaration that the dividend is subject to a reduced rate as a result of the application of a DTA;
and
b) a written undertaking to inform their CSDP, broker or the Company, as the case may be, should
the circumstances affecting the reduced rate change or the beneficial owner ceases to be the
beneficial owner,
both in the form prescribed by the Commissioner for the South African Revenue Service. Non-resident
shareholders are advised to contact their CSDP, broker or the Company, as the case may be, to arrange
for the above-mentioned documents to be submitted prior to payment of the dividend if such documents
have not already been submitted, if applicable.
Return Of Capital Tax Treatment
The return of capital of 11 cents per share constitutes a "return of capital" as defined in section 1 of the
Income Tax Act. The return of capital is not a "dividend" as defined in the Income Tax Act and will
therefore not attract dividends tax.
South African resident shareholders who hold their shares as capital assets will be required in terms of
paragraph 76B of the Eighth Schedule to the Income Tax Act to reduce the base cost of their Exemplar
shares with the amount of capital returned. If the amount of capital returned exceeds the base cost of
the Collins shares in the hands of a particular shareholder, the excess will constitute a capital gain in
the hands of the shareholder and the shareholder must account for capital gains tax on such capital
gain, unless the shareholder can rely on a capital gains tax exemption. Collins shareholders who hold
their shares as trading stock should obtain advice on the correct tax treatment of the return of capital.
The South African tax consequences for non-South African resident Collins shareholders in respect of
the return of capital is fact dependent and depends on the extent of their shareholding and activities in
South Africa - such shareholders should obtain advice on the correct tax treatment of the return of
capital.
The information provided above is generic in nature and does not constitute tax advice. Collins
shareholders are advised to obtain appropriate advice from their professional advisers in this regard.
Shares in issue at the date of declaration of this dividend: 334 097 767
Collins' income tax reference number: 9725/126/71/9.
OUTLOOK
At the beginning of the year we were looking forward to decreasing interest rates and its potential
positive impact on the Company and the South African economy. Current geopolitical conflicts have
deferred these hopes certainly for the near term. We are however fortunate to have renegotiated better
rates on some of our funding facilities which will compensate for the negative effects of this impact. In
the short term, we will continue reducing debt through various disposals, having already reduced debt
by R106 million in March and April, all the while remaining dedicated to delivering strong returns to
shareholders and being on the look out for good opportunities that may arise.
SHORT-FORM ANNOUNCEMENT
The contents of this announcement is the responsibility of the board of directors of Collins. This
announcement is only a summary of the information contained in Collins' group audited annual financial
statements for the year ended 28 February 2026 ("2026 AFS") and does not include full or complete
details. Any investment decisions by investors and shareholders should be based on consideration of
the full 2026 AFS published on SENS on Friday, 15 May 2026.
Collins' summarised audited consolidated financial results for the year ended 28 February 2026, which
includes directors' commentary, has been published on the Company's website at:
https://collinsgroup.co.za/sens-announcements-2026/ .
Collins' 2026 AFS have been released on SENS and are available on the JSE website at:
https://senspdf.jse.co.za/documents/2026/jse/isse/ccpe/ye2026.pdf and on the Company website at:
https://collinsgroup.co.za/annual-report-2026/ .
This short-form announcement has not been audited or reviewed by Collins' auditors. The 2026 AFS
have been audited by PWC South Africa, who expressed an unmodified opinion thereon. The opinion
is available, along with the 2026 AFS, on Collins' website.
Copies of the 2026 AFS may be requested via email to cppcosec@leacorporateservices.co.za or
query@collinsprop.co.za.
K R Collins G C Lang
Chairman Director
19 May 2026
Sponsor: Questco Corporate Advisory (Pty) Ltd
Date: 19-05-2026 03:17:00
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