Wrap Text
Unaudited financial results and dividend declaration for the six months ended 31 August 2026
SPEAR REIT LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2015/407237/06)
Share code: SEA
ISIN: ZAE000228995
LEI: 378900F76170CCB33C50
Approved as a REIT by the JSE
(“Spear” or “the Company”)
UNAUDITED FINANCIAL RESULTS AND DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED
31 AUGUST 2026
1. SALIENT FEATURES
HY2027 HY2026 Variance
Distributable income per share cents 47.29 43.78 8.02%
Distribution per share cents 44.92 41.59 8.02%
Pay-out ratio % 95.00 95.00 *
Total distributable income R'000 238,645 173,247 37.75%
Revenue excluding smoothing R'000 494,856 386,182 28.14%
Revenue including smoothing R'000 508,708 395,678 28.57%
Interest cover ratio Times 6.31 4.05 *
SA REIT Cost to Income % 45.81 45.61 *
SA REIT Administrative cost to income % 7.27 6.39 13.69
Basic earnings per share cents 96.30 73.96 30.21%
Headline earnings per share cents 43.74 43.33 0.95%
* Note: % variance is not applicable
HY2027 FY2026
Loan to value % 21.91 22.94
Tangible net asset value per share R 13.33 12.91
Weighted average cost of debt % 8.54 8.59
Weighted average cost of variable debt % 8.24 8.20
Weighted average cost of fixed debt % 8.77 8.75
Fixed debt ratio % 56.04 71.05
Weighted Average expiry of debt Months 36.85 34.07
Weighted Average expiry of fixed debt Months 24.66 30.67
Number of net shares in issue ‘000 504,691 416,397
2. KEY FINANCIAL HIGHLIGHTS
Industrial Commercial Retail Develop- HY27 Total FY26 Total
ment
Number of properties 16 18 10 - 44 42
Value of properties 3,302,458 3,387,254 2,019,236 104,071 8,813,019 7,176,839
(R'000)
Value % 38% 38% 23% 1% 100% -
Property revenue 219,589 161,639 113,562 18 494,808 840,171
excl smoothing
(R'000)
Revenue % 44.38% 32.67% 22.95% 0.00% 100% -
Net Solar income 9,685 1,507 5,090 - 16,281 21,809
(R'000)
Property cost to 38.93% 38.75% 38.65% 38.67% 38.55%
income ratio
GLA m² 422,000 151,106 100,925 - 674,031 630,061
GLA % 62.61% 22.42% 14.97% 0.00% 100%
Vacant area m² 7,505 12,154 3,269 - 22,929 17,120
Vacancy per sector 1.78% 8.04% 3.24% 0.00% 0.00% -
%
Vacancy on total 1.11% 1.80% 0.49% 0.00% 3.40% 2.72%
GLA %
Reversion % YTD All 13.49% 4.62% 4.90% N/A 7.98% -2.28%
Reversion % 5.97% 6.55% 3.10% N/A 5.82% 6.11%
Renewals only
Reversion % on 27.22% 4.38% 25.89% N/A 10.44% -9.04%
vacancies and relets
Weighted average 6.82% 7.07% 6.76% 0.00% 6.90% 7.04%
Lease escalation %
Weighted average 34.42 23.42 24.52 - 27.38 30.28
unexpired lease term
(months)
3. CEO COMMENTARY
Spear’s investment case has successfully been built around one province. Spear owns and operates a high-
quality real estate portfolio only in the Western Cape, with the bulk of the portfolio concentrated in greater
Cape Town. No other listed South African REIT follows the same regional specialist approach. That focus
gives Spear a practical advantage: our teams understand the local market, tenant base, development pipeline
and supply constraints in detail. The Western Cape also offers a supportive operating backdrop through
reliable infrastructure, a resilient economy and continued private investment in the provincial economy. These
conditions, combined with disciplined strategy execution, provide the foundation for long-term stakeholder
returns.
Spear’s income is generated from a well-diversified industrial, retail, office and mixed-use real estate portfolio.
Each investment is assessed on the durability of its cash flow and its ability to strengthen the portfolio over
time. Industrial real estate is the largest component and provides exposure to logistics, manufacturing and
other activities that are expanding in the Western Cape. Convenience retail, well-located offices in primary
nodes and mixed-use assets diversify the income base further within the portfolio. Spear’s portfolio is fully
internally managed allowing the asset and property management teams to respond quickly to potential
vacancies, lease renewals and tenant requirements while maintaining close control over costs and rental
growth.
Spear’s mission is to be the leading Western Cape REIT and to translate that position into reliable annual
growth in distributions. Spear’s strategy is implemented by a management team with extensive experience in
the province and a record of completing accretive transactions and delivering on asset management
improvements that unlock sustained shareholder value. Given Spear’s regional focus our people and assets
are located in the same market, decisions are informed by current local conditions rather than distant
assumptions. This proximity supports faster responses, clear accountability and active oversight of every
portfolio asset.
Spear’s regional focus enables management to maintain excellent proximity to the asset base and remain
directly involved in the oversight and execution of the leasing strategy, tenant engagement, maintenance and
capital projects across the portfolio. This involvement allows issues to be addressed early and opportunities
to be assessed quickly elevating its first-mover advantage status. Spear shareholders can judge the business
against a clear mandate: invest in a market we know, manage properties actively within our region, and
generate compounding value over time.
HY2027 required careful execution of the operational and financial strategy set out at the onset of the financial
year. Trading conditions remained demanding, even as enquiries and leasing activity began to improve.
Management responded by concentrating on the matters within its control: robust collections, growing
occupancy, optimising funding to compress cost of capital and delivery of the acquisitive and organic growth
ambitions for Spear. The reporting period was again a very active period for the Spear team delivering income
and asset value growth, but not at any cost. Decisions were taken within the same financial and investment
parameters that have guided Spear since listing which has given credence to Spear’s credible, predictable
and consistent mantra. Operational targets remained the immediate priority, while acquisitions and
development work continued where the expected returns justified the commitment of capital.
New acquisitions worth R1.402 billion transferred to Spear during HY2027. The assets added 48 169m² of
high-quality Western Cape real estate to the core portfolio on a blended yield of 8.99%, which was ahead of
Spear’s weighted average cost of capital. These new acquisitions strengthen the portfolio without changing
its geographic mandate but bolstering the quality of its sub-sectoral diversification.
Portfolio occupancy closed the half year at 96.60%, supported by sustained marketing and leasing success.
Collections remained robust, rental reversions produced increases above inflation and tenant retention
continued to execute successfully. Following the Santam Precinct, Tygervalley and Watergate Centre,
Mitchells Plain transactions, Spear’s loan-to-value was 21.91% at HY2027. This level of gearing leaves
sufficient capacity for the current development programme and future investments, subject to Spear’s return
requirements and funding strategies.
Sectoral performance
Across the core portfolio leases concluded during the half year delivered a positive reversion of 7.98%. This
improvement is set to support revenue growth as the year progresses. Leasing momentum is set to be
maintained across all sub-sectors as the demand for operational space across the Spear portfolio remains
consistent given the high-quality locations of the portfolio.
Industrial portfolio
Industrial property accounts for 63% of Spear’s GLA and remained the strongest operating segment in
HY2027. Renewals and new lettings produced a positive rental reversion of 13.49%. The industrial portfolio
comprises logistics, urban distribution, manufacturing, warehousing and multi-let user assets across
established Cape Metropole industrial areas. Functional yards, controlled access, round-the-clock security
and installed solar capacity support a wide range of occupier needs. Organic growth is being added to the
industrial portfolio through three projects: 30 000m² at GTX Development in George, 7 150m² for the Mambo’s
Storage & Home distribution centre at Bravo Park in Blackheath, and 2 000m² of light industrial at The
Anchorage in Paarden Eiland. Limited available stock, the cost of zoned land and the cost of construction are
key drivers to the steady occupier demand that has supported the industrial portfolio’s performance and
growth prospects.
Retail portfolio
Watergate Centre in Mitchells Plain joined the portfolio during HY2027 and increased Spear’s exposure to
defensive convenience retail. With the retail portfolio now operating at greater scale, this sub-sector produced
results in line with management’s forecasts and maintained strong collection and occupancy levels across
both convenience and destination formats. National retailers represent 68% of the tenant base by revenue.
Increasing that proportion remains an important part of managing tenant credit risk. Spear’s retail centres
serve surrounding residents, commuters and businesses rather than depending on local or international
tourism. Sable Square, Maynard Mall and Watergate Centre each hold a strong position in their immediate
catchments and traded according to plan during the period. Their locations also give national brands access
to growing communities across several LSM categories.
Commercial portfolio
The office portfolio met management’s expectations for HY2027 and recorded further improvement in
occupancy. Much of Spear’s space is situated in established business districts with access to arterial roads
and public transport. These locations, together with a continued preference among occupiers for better-quality
premises, have helped reduce vacancies. Although the shortage of prime Cape Town office accommodation
is less pronounced than it was in earlier years, supply remains restricted in several key nodes. Those
conditions informed the decision to acquire the Century City development site. Development planning of the
Century City land is in progress, with management evaluating how best to add efficient, modern space in
response to identifiable occupier demand at rental levels that meet Spear’s return requirements.
Outlook and Guidance
Due to strong operational and financial performance the HY2027 DIPS increased by 8.02% compared to
FY2026, exceeding the guidance previously provided to the market of 6% - 8% DIPS growth in FY2027. After
considering the half-year performance and information available at the reporting date, and the successful
transfer of the four new assets into the portfolio, management has raised full-year DIPS growth guidance to
9%-11% relative to FY2026. The Board continues to target a 95% payout ratio. The revised range assumes
that current leasing, collection and cost trends broadly continue and that the acquired assets contribute as
expected.
Guidance assumptions
The revised FY2027 forecast incorporates the assumptions listed below:
- No loadshedding for the remainder of FY2027
- Vacant space declines in accordance with management’s forecast
- Lease renewals are completed on the terms assumed in the forecast
- No material tenant failures occur during the financial year
- Tenants continue to absorb increases in municipal rates, utilities and other property charges
- The effect of any changes in SARB monetary policy is absorbed during the year
- Cape Town, the Western Cape and South Africa experience no civil unrest
Guidance disclaimers
If any of these assumptions change, the forecast for the year ending 28 February 2027 may also change.
Management has prepared the information and views in this commentary in good faith using sources it
considers reliable. Spear gives no representation, warranty, undertaking or guarantee that the information is
complete or accurate, or that the opinions expressed are correct. Responsibility for the forecast for the period
ending 28 February 2027 rests solely with the directors. Spear’s independent external auditors have neither
reviewed nor audited that forecast.
4. DIVIDEND DECLARATION WITH ELECTION TO REINVEST
The directors of the Company resolved to declare a gross interim dividend of 44.92107 cents per share from
income reserves in respect of the six months ended 31 August 2026, payable to shareholders registered as
such at the close of business on Friday, 13 November 2026 (“Record Date”).
Shareholders will be entitled to elect to reinvest the cash dividend, in return for Spear ordinary shares
(“Shares”) (“Dividend Reinvestment Alternative”), failing which, they will receive the cash dividend (“Cash
Dividend”). Further details regarding the Dividend Reinvestment Alternative will be set out in a circular to
shareholders, to be issued today, on Thursday, 22 October 2026 (“Circular”).
The number of Shares which shareholders will receive in terms of the Dividend Reinvestment Alternative will
be determined with reference to the ratio that the Cash Dividend per Share bears to the reinvestment price.
The reinvestment price will be determined by Spear’s board of directors, either itself or through a board sub-
committee appointed to set the pricing and terms of the Dividend Reinvestment Alternative (“Board”), with
reference to market conditions at the time, including with reference to the closing price of Shares on the JSE
on the day prior to the finalisation date and/or the volume weighted average traded price per Share for a
period up to 30 days prior to the finalisation date. The reinvestment price will be announced on the finalisation
date, which will be no later than on Monday, 2 November 2026 (“Reinvestment Price”).
The entitlement of shareholders to elect to participate in the Dividend Reinvestment Alternative is subject to
the Board having the discretion to withdraw the entitlement to elect the Dividend Reinvestment Alternative
should market conditions warrant such action. A withdrawal of the entitlement to elect the Dividend
Reinvestment Alternative would be communicated to shareholders before the publication of the finalisation
announcement on Monday, 2 November 2026.
By electing the Dividend Reinvestment Alternative, shareholders will be able to increase their shareholding
in Spear without incurring dealing costs. In turn, and in line with Spear's stated strategy to reduce its Loan-
to-Value (LTV), the reinvested funds will be deployed to reduce existing debt.
Please see below the salient dates and times relating to the Cash Dividend and Dividend Reinvestment
Alternative:
SALIENT DATES AND TIMES 2026
Record date to determine which Shareholders are entitled to receive this Friday, 16 October
circular (“Circular”)
Declaration Date Thursday, 22 October
Circular and form of election posted to Shareholders Thursday, 22 October
Finalisation announcement containing the Dividend Reinvestment Alternative Monday, 2 November
issue price, ratio and finalisation information on SENS, by 11:00
Last day to trade cum Dividend Reinvestment Alternative and Cash Dividend Tuesday, 10 November
(“LDT”)
Trading commences ex Dividend Reinvestment Alternative and Cash Wednesday, 11 November
Dividend
Record Date Friday, 13 November
Listing of maximum possible number of Shares to be issued under the Friday, 13 November
Dividend Reinvestment Alternative
Offer closes. Last day to elect to receive the Dividend Reinvestment Friday, 13 November
Alternative by 12:00 on
Electronic payment and CSDP/broker accounts updated in respect of Cash Monday, 16 November
Dividend on
Announcement of the results of the Dividend Reinvestment Alternative and Monday, 16 November
Cash Dividend on SENS
Share certificates posted and CSDP/broker accounts updated in respect of Wednesday, 18 November
the Dividend Reinvestment Alternative on
Adjustment of number of new Shares listed on or about Friday, 20 November
Notes:
1. Shareholders electing the Dividend Reinvestment Alternative, should note that settlement of the Shares
will occur three business days after the Record Date, which differs from the conventional one business
day after the record date settlement process.
2. Shares may not be dematerialised or rematerialised between Wednesday, 11 November 2026 and
Friday, 13 November 2026, both days inclusive.
3. The above dates and times are subject to change. Any changes will be announced on SENS.
4. All times quoted in this announcement are South African times.
The dividend amount, net of South African dividend tax of 20%, is 35.93686 cents per Share for those
shareholders who are not exempt from dividend withholding tax or are not entitled to a reduced rate in terms
of the applicable double-tax agreement. The number of ordinary shares in issue at the declaration date is
517 589 651 and the income tax number of the Company is 9068437236.
Tax implications
In accordance with Spear’s status as a Real Estate Investment Trust (“REIT”), shareholders are advised that
the dividend meets the requirements of a “qualifying distribution” for the purposes of section 25BB of the
Income Tax Act, No. 58 of 1962, as amended (“Income Tax Act”).
South African tax residents
Qualifying distributions received by shareholders who are South African tax residents must be included in the
gross income of such shareholders (as a non-exempt dividend in terms of section 10(1)(k)(i)(aa) of the Income
Tax Act), with the effect that the qualifying distribution is taxable as income in the hands of the shareholder.
Given the fact that the qualifying distributions are taxable they are exempt from dividend withholding tax
(“DWT”) in terms of section 64F(1)(l) of the Income Tax Act.
Non-resident shareholders
Qualifying distributions received by non-resident shareholders will not be taxable as income and will instead
be treated as ordinary dividends which are exempt in terms of the usual dividend exemptions per section
10(1)(k)(i)(aa) of the Income Tax Act. Any qualifying distribution received by a non-resident from a REIT will
be subject to DWT at a rate of 20% in terms of section 64D of the Income Tax Act, 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 DWT will be withheld at a rate of 20%, the net amount
due to non-resident shareholders will be 35.93686 cents per Share. A reduced DWT 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 the uncertificated Shares, or to the Transfer
Secretaries, 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 Transfer Secretaries, 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 SARS. Non-resident shareholders are advised to contact their CSDP or broker
or the Transfer Secretaries, as the case may be, to arrange for the abovementioned documents to be
submitted prior to payment of the distribution if such documents have not already been submitted, if
applicable.
Further information
Fractions
Trading in the electronic Strate environment does not permit fractions and fractional entitlements in respect
of Shares. Accordingly, should a shareholder’s reinvestment in new Shares, calculated in accordance with
the ratio to be announced in the finalisation announcement, give rise to a fraction of a new Share, such fraction
will be rounded down to the nearest whole number, resulting in the allocation of whole Shares and a payment
to the shareholder in respect of the remaining cash amount due to that shareholder under the dividend.
Certificated shareholders whose bank account details are not held by the Transfer Secretaries, are requested
to provide such details to the Transfer Secretaries to enable payment of the fraction due to the shareholder
in respect of the Dividend Reinvestment Alternative. Should no details be on record, the funds will be held by
the Company until such time as the details have been provided and the cash fraction will be paid to the
shareholder upon its request.
Foreign Shareholders
Shareholders that are registered in a jurisdiction outside of South Africa, or who are resident, domiciled or
located in, or who are citizens of, a jurisdiction other than South Africa (“Foreign Shareholders”) should note
that the distribution of the Circular and/or accompanying documents and the right to elect the Dividend
Reinvestment Alternative in jurisdictions other than South Africa may be restricted by law and a failure to
comply with any of these restrictions may constitute a violation of the securities laws of any such jurisdictions.
The Shares have not been and will not be registered for the purposes of the Dividend Reinvestment
Alternative under the securities laws of the United Kingdom, European Economic Area or EEA, Canada,
United States of America, Japan or Australia and accordingly are not being offered, sold, taken up, re-sold or
delivered directly or indirectly to recipients with registered addresses in such jurisdictions, unless certain
exemptions from those jurisdictions are applicable. In addition, the right to the Dividend Reinvestment
Alternative is not being offered, directly or indirectly, in any jurisdictions where such reinvestment is restricted
by law. Foreign Shareholders should consult their own professional advisors to determine whether any
governmental or other consents are required or other formalities need to be observed to allow them to take
up the Dividend Reinvestment Alternative. To the extent that Foreign Shareholders are not entitled to take up
the Dividend Reinvestment Alternative, as a result of the aforementioned restrictions, such Foreign
Shareholders should not elect the Dividend Reinvestment Alternative.
5. DIRECTORS’ RESPONSIBILITY
This announcement is the responsibility of the directors of the Company and has not been reviewed or audited
by the Company’s auditors. It contains only a summary of the information in the unaudited consolidated interim
results for the six months ended 31 August 2026 (“Full Announcement”) and does not contain full or
complete details. The Full Announcement can be found on the JSE cloudlink at:
https://senspdf.jse.co.za/documents/2026/JSE/ISSE/SEAE/SEAHY27.pdf
A copy of the Full Announcement is also available for viewing on the Company’s website at
https://spearprop.co.za/pdf/investor-relations/SEAHY27.pdf. In addition, electronic copies of the Full
Announcement may be requested and obtained, at no charge, from the Company at info@spearprop.co.za.
Any investment decisions by investors and/or shareholders should be based on consideration of the Full
Announcement, as a whole.
6. RESULTS PRESENTATION
Shareholders are invited to view Spear’s interim results presentation to be broadcasted on YouTube at
11h00 SAST today, 22 October 2026.
Presentation details:
- View and listen mode;
- Link: https://youtube.com/live/GtvAwanEEEg?feature=share
- Presentation slides will be made available on Spear’s website shortly before the broadcast of the
presentation under investor relations / financial results / presentations, at the following link:
https://spearprop.co.za/investor-communications/presentations/
- Questions may be e-mailed during the presentation to: info@spearprop.co.za
Cape Town
22 October 2026
Sponsor
PSG Capital
Date: 22/10/2026 07:05:00
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