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Audited AFS for the year ended 31 March 2026 & Distribution of Integrated Annual Report & Notice of AGM
ACCELERATE PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration No 2005/015057/06)
JSE code: APF ISIN code: ZAE000185815
Bond company code: APFE
LEI: 378900D514788C447E45
(Listed in the General Segment)
(REIT status approved)
("Accelerate" or the "Company")
AUDITED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 AND DISTRIBUTION
OF INTEGRATED ANNUAL REPORT AND NOTICE OF ANNUAL GENERAL MEETING
FINANCIAL SNAPSHOT
31 Mar 31 Mar Year-on-year % change
2026 2025 movement year-on-year
Rental income including 728 640 824 036 (95 396) (11,6%)
recoveries (R'000)
Net property income excl. 424 773 494 737 (69 964) (14,1%)
straight-line (R'000)
Fair value adjustments (R'000) (423 412) (318 945) (104 467) (32,8%)
Net finance costs (R'000) (390 416) (272 019) (118 397) (43,5%)
Loss after taxation (R'000) (45 888) (1 269 635) 1 223 747 96,4%
SA REIT Funds from operations 6,25 (3,97) 10,2 257,3%
per share (cents)
Investment property at fair value 6 600 000 7 749 795 (1 149 795) (14,8%)
(including assets held for sale)
(R'000)
SA REIT Net Asset Value ("NAV") 1,81 2,03 (0,22) (11,0%)
per share (R)
Basic and diluted loss per share (2,33) (70,11) 67,78 96,7%
(cents)#
Basic and diluted headline 19,43 (54,96) 74,40 135,4%
earnings/(loss) per share (cents)
# The rights offer was concluded at 40 cents per share which was below the ruling price of 45 cents per share on that day. As a result, a
bonus factor was calculated (in terms of IAS 33) resulting in an adjustment in the comparative information previously issued.
KEY FEATURES / FINANCIAL YEAR IN REVIEW
The period under review remained challenging, with global geopolitical tensions, inflationary
pressure, infrastructure constraints, weak consumer confidence and high living costs continuing to
affect tenant and investor confidence. Interest-rate relief in South Africa began to support the
operating environment, although uncertainty remained.
The Group continued to focus on achieving its strategic objectives, with asset disposals remaining a
key priority to improve financial covenants, reduce debt and strengthen the balance sheet.
Accelerate disposed of four assets and a vacant erf with a combined GLA of 63,447m² for a cumulative
amount of R788,5 million, net of selling costs.
After the reporting date, Valleyview, Buzz vacant land, The Buzz Shopping Centre, Waterford and
Edgars Polokwane were transferred with a combined GLA of 27 114m². The net proceeds from the
disposal of these assets of R278,2 million (net of commission) were mostly used to settle debt.
We are pleased to have achieved an average collection rate of 95,4% in a tough economic environment
for our tenants.
We thank our Board and teams for their support, dedication and commitment during the year.
FINANCIAL RESULTS
Rental income decreased by R91,9 million from R609,2 million to R517,2 million. The prior period,
however, included R61,8 million relating to headlease income. Excluding the headlease income (2025),
the rental income decreased by R30,3 million. The disposals accounted for R34,3 million of the
decrease, R15,8 million was due to positive reversions and R19,8 million was due to negative
reversions. On a like-for-like basis, rental increased by 1,4%.
Property expenses decreased by R25,4 million from R329,3 million to R303,9 million. Utility costs were
the main contributor to property operating expenses, which increased by 1,3%. Rates and taxes and
other property expenses decreased by R6,8 million and R20,4 million respectively, mainly as a result
of disposals. Other operating costs/administrative costs decreased by 4,2%, largely due to a decrease
in professional fees.
Fair value adjustments relating to investment property increased from R274,3 million to R428,9 million
due to the downward adjustment in expected net rental in some commercial properties, whereas the
derivative had a positive fair value adjustment of R5,5 million compared to a negative fair value
adjustment of R44,7 million in the prior year.
Expected credit losses ("ECL") allowance decreased significantly due to the impairment of the Related
Party balance of R970,7 million in the prior year. The ECL includes the write-off of the Related Party
balances in the current year. The ECL allowance relating to trade receivables decreased by
R78,3 million resulting from improved collections and a cleaner debtor book following the prior year
write-offs.
Finance costs on interest bearing borrowings are 16,1% lower than in the prior financial year. The
decrease is mainly due to the disposal of assets during the current and prior year. Disposals in the
current year resulted in R777,3 million being utilised to reduce interest bearing borrowings. Proceeds
of R95,6 million (net of costs) was raised from the rights issue of which R50,0 million was used to
reduce interest-bearing borrowings for the purposes of being able to redraw for Fourways Mall capex.
R39,6 million of the R50,0 million was used towards capex at Fourways Mall during the year. The
balance of the rights offer proceeds was used for working capital purposes. The swaps accounted for
R3,3 million of the total cost. In the prior period the swaps were cancelled and yielded income of
R55,4 million, therefore, compared to the prior period, the swaps resulted in a negative movement of
R58,7 million. Finance income decreased substantially due to the write-off of Related Party balances
and consequently not earning interest.
LETTING AND PORTFOLIO
At year-end, the portfolio consisted of 15 properties with a total value of R6,6 billion, including
investment property and non-current assets held-for-sale, and a gross lettable area of 235 922m².
Capital expenditure continues to be a strategic objective of the Group. During the year, R110,4 million
was spent on properties, which includes investment properties and non-current assets held-for-sale.
This was funded from available funds from facilities as well as specific facilities put in place for
Fourways Mall.
Vacancies decreased during the year from 19,4% as at 31 March 2025 to 10,9% at year end. With the
disposal of four properties and a vacant stand post the reporting period, the vacancies of 25 631m² as
at 31 March 2026 reduced by a further 9 430m² to 8,4%. The weighted average rental across the
portfolio increased to R196,9/m² from R184,7/m² in the prior financial year due to positive reversions
and escalations.
FOURWAYS MALL PERFORMANCE
Fourways Mall continued to show improved operating momentum during the year. Vacancies
decreased from 13,7% to 9,7% following a focused leasing drive. Trading density averaged R2 621/m²
per month over the 12 months to March 2026, an 8,4% improvement on the previous rolling 12-month
average. Footfall also improved, with the Mall averaging more than one million visitors per month and
reaching more than 1,7 million visitors in December 2025.
The most significant recent letting activity relates to Fourways View, where leases have been secured
with Pantry, George's Grill, Tashas, Fournos, Liquor Lane, Nossa Cassa, The Glow Theory, Petworld and
The Piercery. Together, these leases cover 4 342m² at an average rental of R201,8/m². Pantry has
signed a 10-year lease, and several other tenants have signed five-year leases, supporting the creation
of a stronger food and lifestyle node at the Mall.
Additional letting concluded after year-end is expected to reduce Fourways Mall's vacancy rate closer
to 5%. The Group remains focused on converting the improved leasing position, stronger footfall and
higher trading density into sustainable collections, tenant affordability and net property income.
FUNDING
Our current facilities mature on 31 March 2027. Previously we agreed milestones with the Group's
funders to achieve in order to retain our funding to 31 March 2027. The current milestones are being
amended to emphasize the implementation and finalisation of the Asset, Property and Development
Agreement with Flanagan and Gerard and Luvon (Moolman Group), utilising R43,5 million from the
insurance claim proceeds towards Fourways Mall capex, and the disposal of identified assets.
The lower interest rate cycle during the year under review positively impacted the Group's weighted
average cost of funding which decreased from 10,9% as at 31 March 2025 to 9,9% as at
31 March 2026. The Group's covenant ICR remained at 1,2 times cover similar to the prior year.
The interest rate cap of R1,5 billion that was entered into during April 2024, matured in April 2025.
The cap was replaced by a R2,0 billion swap in April 2025 for a period of two years to April 2027 at a
rate of 7,38%. During the year, R1,0 billion of the R2,0 billion swap was extended for an additional
year to October 2028 with an amendment to the rate to 7,05% from 7,38%. The R500 million swap
which was entered into in August 2024 for a period of two years was also extended for an additional
year to August 2027 at a rate of 6,96%.
Finance costs on interest bearing borrowings were R375,2 million for the year compared to
R447,1 million in the prior year. Swap interest received reduced from R55,4 million to a payment of
R3,3 million due to cancellation of the swaps in the prior financial year. The SA REIT LTV has decreased
from 48,3% as at 31 March 2025 to 43,7% as at 31 March 2026. This is mainly a function of the
disposals and is expected to improve as the disposal programme continues to progress.
DIVIDEND
Accelerate's SA REIT Funds from Operations ("SA REIT FFO") per share amounted to a profit of
6,25 cents for the year ended 31 March 2026 compared to a loss of 3,97 cents for the year ended
31 March 2025. The positive result was mainly attributable to lower finance costs and the receipt of
the insurance claim. In performing the Solvency and Liquidity test conducted in terms of section 46 of
the Companies Act, which takes into consideration the working capital cash flow forecast, expected
working capital requirements and capital expenditure requirements, the Board resolved not to declare
a dividend for the year ended 31 March 2026 (31 March 2025: Nil).
The Board has determined that distribution per share and distributable earnings remain the
appropriate key performance metrics for trading statement purposes.
RELATED PARTY CLAIM
In July 2024, the Company and Mr Georgiou (on behalf of the Related Parties) signed a Settlement
Agreement which would have resulted in the settlement of amounts due from various entities,
amounting to approximately R970,7 million, to the Company. Firstly, the debt from the various entities
would have been ceded and assigned to Azrapart whereafter, the amount of Azrapart's claim of
R300,0 million would be set off against the debt due to the Company. Thereafter, further assets, in
the form of bulk and parking, would have been acquired from Azrapart with the termination amounts
for the property management companies, FWP and APMC, also being set off against the debt due to
the Company. The Settlement Agreement would have resulted in a net settlement of amounts due
and payable with no outflow of cash for the Company.
The Settlement Agreement however lapsed during November 2024 as certain suspensive conditions
were not met. Management redrafted a New Settlement Agreement on substantially the same basis
as the previous Settlement Agreement for signature as both parties were keen to conclude the
transaction. At the end of the previous financial year, Mr Georgiou, on behalf of the Related Parties,
did not sign the New Settlement Agreement and the receivables due to the Company from the Related
Parties were fully impaired.
In the current financial year, the outstanding amounts due from the Related Party were written off.
Despite the write-off, the Company will continue to seek recovery of amounts due.
Management has reassessed whether a present enforceable obligation exists in respect of the Rebuilt
Claim, taking into account a board resolution authorising payment in the context of a settlement of all
outstanding debt due to the Company, and two Settlement Agreements that lapsed, which specifically
record that no agreement, representation or warranty between the parties, other than as set out in
the 2024 Settlement Agreement, were binding on the parties. As no binding settlement agreement
exists and no payment has been made to Azrapart, management is satisfied that, as at the reporting
date, no present enforceable obligation exists in respect of the Rebuilt Claim. The Rebuilt Claim was
therefore derecognised.
EVENTS AFTER THE REPORTING PERIOD
Subsequent to the financial year-end, the following properties were transferred as part of the Group's
strategy to improve the financial metrics of the fund:
- The Buzz Shopping Centre – R150,0 million
- Waterford – R65,0 million
- The Buzz vacant land – R38,8 million
- Valleyview – R16,2 million
- Edgars Polokwane – R24,1 million
Following these disposals, portfolio vacancies reduced from 10,9% to 8,4%, and LTV reduced to 41,1%.
Subsequent to year-end, Accelerate entered into an agreement to dispose of BMW Fourways to CFAO
Mobility Properties Proprietary Limited for R174,0 million, exclusive of VAT. All suspensive conditions
relating to the transaction have been fulfilled, with transfer to take effect on registration. The majority
of proceeds are expected to be applied to reduce debt.
AUDITOR'S OPINION AND AVAILABILITY OF AFS
This short-form announcement is extracted from audited information but has not itself been audited.
The auditors, PricewaterhouseCoopers Incorporated ("PWC"), have issued an unmodified audit
opinion on the consolidated and separate financial statements of the Company for the year ended
31 March 2026 ("AFS") and a copy of their audit opinion, together with the underlying AFS, is available
for inspection at the Company's registered address and on the Company's website at:
https://acceleratepf.co.za/investor-centre/financial-results/.
BASIS OF PREPARATION
The AFS have been prepared in accordance with IFRS Accounting Standards, the SAICA Financial
Reporting Guides as issued by the Accounting Practices Committee, Financial Pronouncements as
issued by the Financial Reporting Standards Council, the requirements of the Companies Act, the JSE
Listings Requirements and the JSE Debt and Specialist Securities Listings Requirements.
GENERAL RESPONSIBILITY AND ACCESS STATEMENT
This announcement is the responsibility of the directors of Accelerate. It is only a summary of the
information contained in the AFS. Shareholders and noteholders should base any investment decision
on consideration of the full AFS, as published:
- on the Company's website at: https://acceleratepf.co.za/investor-centre/financial-results/ and
- via the JSE cloudlink at: https://senspdf.jse.co.za/documents/2026/jse/isse/apf/FY2026.pdf.
Copies of the AFS may also be requested from the registered office of Accelerate and the Company's
sponsor at no charge during office hours.
DISTRIBUTION OF INTEGRATED ANNUAL REPORT
Shareholders and noteholders are advised that the Company's integrated annual report for the year
ended 31 March 2026 ("Integrated Report"), containing the AFS and the notice convening the annual
general meeting of shareholders ("Notice"), is available on the Company's website at:
https://acceleratepf.co.za/investor-centre/integrated-reports/ and will be distributed to shareholders
today, Friday, 31 July 2026.
NOTICE OF ANNUAL GENERAL MEETING
Shareholders are advised that the Company's annual general meeting ("AGM") will be held in the main
boardroom at Accelerate's registered office, Cedar Square Shopping Centre, Management Office, 1st
Floor, Cnr Willow Avenue and Cedar Road, Fourways, Johannesburg, (and virtually, by way of electronic
communication, as further detailed in the Notice), on Thursday, 3 September 2026 at 10:00.
Important dates
2026
Record date for receipt of the Integrated Report, incorporating the AFS Friday, 24 July
and Notice
Integrated Report, incorporating the AFS and Notice, distributed to Friday, 31 July
shareholders and made available on https://acceleratepf.co.za/investor-
centre/integrated-reports/
Last day to trade in order to be eligible to participate in and vote at the Tuesday, 25 August
AGM
Record date to determine which Accelerate shareholders are entitled to Friday, 28 August
participate in and vote at the AGM
Last day to lodge forms of proxy for the AGM (for administrative Wednesday,
purposes only), at 10:00 2 September
AGM to be held at 10:00 Thursday, 3 September
Results of AGM released on SENS on or about Thursday, 3 September
Johannesburg
31 July 2026
CORPORATE INFORMATION
Investor Relations
Articulate Capital Partners: Morne Reinders
Tel: 082 480 4541
Email: morne@articulatepartners.com
Company Secretary
Ms Margi Pinto
Cedar Square Shopping Centre,
Management Office, 1st Floor,
Cnr Willow Ave and Cedar Rd,
Fourways, Johannesburg, 2055
Equity and Debt Sponsor
Questco Corporate Advisory
Date: 31-07-2026 01:00:00
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