Wrap Text
Audited Financial Results And Dividend Declaration For The Year Ended 28 February 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")
AUDITED FINANCIAL RESULTS AND DIVIDEND DECLARATION FOR THE YEAR ENDED
28 FEBRUARY 2026
1. SALIENT FEATURES
FY2026 FY2025 Variance
Distributable income per share cents 90.70 85.55 6.02%
Distribution per share cents 86.16 81.27 6.02%
Pay-out ratio % 95.00 95.00 N/A
Total distributable income R'000 368,620 252,003 46.28%
Revenue excluding smoothing R'000 840,171 681,704 23.25%
Revenue including smoothing R'000 853,196 691,453 23.39%
Basic earnings per share cents 210.94 183.41 15.01%
Headline earnings per share cents 89.45 86.63 3.26%
FY2026 FY2025 Variance
Loan to value % 22.94 27.08 -
Tangible net asset value per share R 12.91 12.20 5.82%
Interest cover ratio Times 4.34 3.34 -
SA REIT Cost to Income % 45.36 44.37 -
SA REIT Administrative cost to income % 6.86 6.79 -
Weighted average cost of debt % 8.59 9.08 -
Weighted average cost of variable debt % 8.20 9.29 -
Weighted average cost of fixed debt % 8.75 9.01 -
Fixed debt ratio % 71.05 77.53 -
Weighted Average expiry of debt Months 34.07 25.97 -
Weighted Average expiry of fixed debt Months 30.67 20.01 -
Number of net shares in issue '000 416,397 320,400 29.96%
2. KEY FINANCIAL HIGHLIGHTS
Industrial Commercial Retail Develop- FY26 FY25
ment Land Total Total
Number of properties 16 17 9 - 42 39
Value of properties 3,137,743 2,459,113 1,499,595 80,242 7,176,693 5,532,267
(R'000)
Value % 44% 34% 21% 1% 100% -
Property revenue excl 355,800 319,442 164,894 22 840,158 681,704
smoothing (R'000)
Revenue % 42.35% 38.02% 19.63% 0.00% 100% -
Net Solar income 12,021 1,930 7,858 - 21,809 16,330
Property cost to income 37.92% 37.82% 39.28% - 38.55% 37.64%
ratio
GLA m² 422,272 127,319 80,469 - 630,061 487,418
GLA % 67.02% 20.21% 12.77% 0.00% 100%
Vacant area m² 5,676 9,479 1,965 - 17,120 14,634
Vacancy per sector % 1.34% 7.45% 2.44% 0.00% - -
Vacancy on total GLA % 0.90% 1.50% 0.31% 0.00% 2.72% 3.00%
Reversion % YTD 2.14% -6.05% -0.71% N/A -2.28% 4.18%
Weighted average Lease 7.11% 7.23% 6.61% 0.00% 7.04% 7.27%
escalation %
Weighted average 37.78 23.09 29.25 - 30.28 24.58
unexpired lease term
(months)
3. CEO COMMENTARY
Spear successfully concluded FY2026 in a mission statement aligned manner and enters FY2027 from a position
of strength and positive forward momentum, supported by a declining cost of capital, a strong balance sheet
primed for growth , Spear's guidance-beating FY2026 results and the inclusion in the All-Property Index and SA
REIT Index on 23 March 2026. Together, these factors provide a solid platform for strategy-aligned growth in
FY2027 and beyond.
The Spear portfolio with its fundamentally defensive characteristics, Western Cape only focus, supported by
strong lease covenants, high-quality tenant base, and real estate assets within primary Cape Town nodes is set
to maintain its robust operational and financial cadence .Spear is confident that the strategic acquisition of
Western Cape assets in FY2026 will continue to yield long-term benefits, positioning the Company to capture
sustained income growth and capital appreciation through FY2027 and beyond. Management is furthermore
pleased to advise that a healthy pipeline of income-producing assets is being cultivated which could see the core
portfolio enhanced to the value of between R500 million and R1.5 billion during FY2027.
The Western Cape, from a real-estate perspective will continue to outperform the rest of South Africa across all
segments of the market which supports a favourable outlook for Spear. This confidence is supported by the
Western Cape's strong economic fundamentals, including the lowest unemployment rate in South Africa, of
18.1%, thus placing more spending power in the hands of the citizens of the Western Cape. Continued investment
by the Western Cape Provincial Government and local authorities in critical areas such as infrastructure, energy
security, transport, healthcare, and education further reinforces the region's attractiveness to semigrants and
establishes itself as a leading investment destination.
Spear remains firmly committed to its role as a responsible, long-term investor in the Western Cape. Through the
disciplined execution of our investment strategy, Spear will continue to contribute meaningfully to the expansion
of the Western Cape economic development agenda set by the Western Cape Provincial Government, and the
City of Cape Town while delivering sustainable total returns to stakeholders.
Sectoral performance
Industrial portfolio
Spear's industrial portfolio continued to deliver stable and resilient performance during FY2026, supported by its
diversified tenant base and strategically and conveniently located assets. The portfolio sustained strong
occupancy levels of 98.66%. Spear's industrial escalation of 7.11% per annum (compounded) further supported
sustainable cash flows and contributed to continued asset value growth across the portfolio.
The industrial portfolio comprises a diverse range of multi-let industrial properties, warehouses, logistics parks,
and urban logistics facilities. It represents 67% of the Group's total GLA and 43.72% of the total Group asset-
value, reinforcing its role as a core driver of Spear's property platform and income generating profile.
Spear's industrial assets are characterised by efficient operational layouts, generous yard space, solar PV
installations, and prime locations that provide easy access to Cape Town's key transport routes. Structural shifts
in the market including onshoring and near-shoring trends, the growth of local manufacturing, and supply chain
diversification strategies continued to support tenant demand. These dynamics contributed to steady rental
growth, sustained high occupancy levels, and longer lease tenures.
The portfolio also maintained a strong rental collection profile, with 99.14% of rentals collected during the year.
During the period, 107,416m² of industrial GLA was renewed or relet, achieving an average positive rental
reversion of 2.14%, reflecting the ongoing stability and demand within the industrial segment.
Spear will continue to expand its industrial portfolio through its healthy development pipeline, including projects
in George, Blackheath and Paarden Eiland.
Retail portfolio
Spear's retail-portfolio underwent meaningful asset-value growth during FY2026 with the acquisition of Maynard
Mall in Wynberg. Given the strong investor demand for retail assets within the Western Cape, Spear's
management remained patient and resolved to invest in high-quality retail assets that met its investment criteria
and financial criteria. Management's patience paid off with the acquisition of Maynard Mall, a 27 000 m²
commuter-convenience retail centre at an initial yield to shareholders of 9,54%.
Maynard Mall has added notable scale to the retail portfolio, increasing total GLA under ownership to 80 469 m2
and retail-portfolio value to R1.50 billion, it has also broadened Spear's income profile of national retailers, with
72% of Maynard Mall's tenants being nationals and 82% of the revenue generated at the property emanating
from national retailers.
Management remains committed to pursuing selective retail-growth opportunities as suitable investment-grade
assets become available, provided they align with Spear's disciplined investment criteria. Spear's retail strategy
remains focused on convenience, commuter and destination retail centres that cater to a broad range of LSM
groups and provide essential goods and services to their surrounding communities, as these asset profiles, in
management's view, remain the most defensive sub-sectoral retail assets.
During the year, Spear's retail assets maintained solid operational performance, achieving occupancy levels of
97.56% and generating stable, reliable cash flows. A total of 14,707m² of retail GLA was renewed or relet,
delivering a marginal negative rental reversion of (0.71%) and in-force average escalations of 6.61%, reflecting
sustained tenant demand for well-located retail space.
The portfolio remains defensively positioned, supported by prime locations and a diversified tenant mix, which
mitigates credit risk in challenging trading environments. National tenants account for approximately 61.47% of
the retail portfolio by GLA, occupying space under long-dated leases and maintaining strong payment track
records, contributing to portfolio stability.
Commercial portfolio
During FY2026, the Western Cape commercial office sector continued to build on the recovery momentum
observed in the prior year. Spear's commercial portfolio benefited from sustained demand for well-located, high-
quality office space across the Cape Metropolitan area, supported by semigration trends, the return-to-office
dynamic, and the continued establishment of regional and international business operations in the Western Cape.
At the same time, the limited pipeline of new office developments continues to underpin favourable demand-and-
supply fundamentals and support future rental-growth prospects despite operating-cost pressures.
Spear's commercial portfolio generated improved occupancy levels, with the portfolio reporting 92.55%
occupancy, during FY2026, reflecting continued letting momentum and improved demand for quality office space
in key nodes.
Leasing activity remained active across the portfolio, with 33,866 m² of commercial GLA renewed or relet,
resulting in a negative rental reversion of (6.05%) and in-force average escalations of 7.23%. These metrics
reflect the portfolio's continued ability to secure lease renewals and maintain income stability while positioning
assets for future rental growth.
Spear's commercial properties are strategically located within highly sought-after primary business nodes and
are supported by reliable back-up power-generation capacity, attractive lease structures, and generous parking
ratios. These attributes, together with Spear's hands-on asset management and targeted leasing initiatives, have
been instrumental in sustaining tenant demand and supporting occupancy stability across the portfolio during
FY2026.
The Western Cape office market continues to benefit from:
• Relocation of national and international companies to Cape Town
• Limited development of new office space
• Improved demand for flexible and efficient workspaces
These factors provide a positive outlook for rental growth in well-located office assets in the primary nodes of
Cape Town.
Outlook and Guidance
The Western Cape real-estate sector is expected to continue demonstrating resilience despite global volatility
and the less favourable macro-economic and municipal-infrastructure conditions experienced in the rest of South
Africa. This resilience is anticipated to be supported by sustained demand from both local and foreign investors,
as well as ongoing semigration trends in the region. The province's superior infrastructure, including transport
networks, telecommunications, and essential services, is expected to further support business operations,
enhancing its attractiveness to investors and reinforcing long-term growth prospects.
Spear will continue to execute its Western-Cape-only strategy, leveraging its deep regional expertise and hands-
on asset management approach to identify and capitalise on portfolio- and earnings-enhancing opportunities.
With a strong pipeline of income producing investment opportunities, greenfield and brownfield developments,
Spear is well positioned to unlock consistent value for shareholders. Spear will continue to pursue an acquisitive
growth strategy, primarily focused on high-quality, income-producing assets across industrial, retail, commercial
and mixed-use real estate assets.
Based on Spear's strategy-led operational and financial performance, and considering prevailing market
conditions, together with the information management has available at this time, DIPS growth is expected to be
between 6% and 8% higher for FY2027 compared to FY2026 subject to the qualifications set out below. The
payout ratio at the time of issuing this SENS is set at 95%, in line with Board approval.
Guidance assumptions
Spear's FY2027 guidance is based on the following key assumptions:
• Minimal loadshedding during FY2027
• Vacancies reduce in line with management forecasts
• Lease renewals are concluded in accordance with projections
• No major tenant failures occur during the period
• Tenants continue to absorb increases in utility charges, municipal rates, and other local authority costs
• Shifts in monetary policy is absorbed during the year
• No civil unrest occurs in Cape Town, the Western Cape, or South Africa
Guidance disclaimers
Any deviations from the assumptions outlined above may impact management's forecast for the year ending
28 February 2027. The information and opinions provided have been recorded and expressed in good faith and
are based upon reliable data made available to management at the time of reporting.
No representation, warranty, undertaking or guarantee of whatsoever nature is made or given regarding the
accuracy and/or completeness of such information and/or the correctness of such opinions.
The forecast for the period ending 28 February 2027 remains the sole responsibility of the directors and has not
been reviewed or audited by Spear's independent external auditors.
4. DIVIDEND DECLARATION WITH ELECTION TO REINVEST
The directors of the Company resolved to declare a gross final dividend of 44.57400 cents per share from income
reserves in respect of the six months ended 28 February 2026, payable to shareholders registered as such at
the close of business on Friday, 5 June 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 Monday, 18 May 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 Tuesday, 26 May 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
Tuesday, 26 May 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 the Circular Friday, 8 May
Declaration Date Monday, 18 May
Circular and form of election posted to shareholders Monday, 18 May
Finalisation announcement containing the Dividend Reinvestment Alternative issue Tuesday, 26 May
price, ratio and finalisation information on SENS, by 11:00
Last day to trade cum Dividend Reinvestment Alternative and Cash Dividend ("LDT") Tuesday, 2 June
Trading commences ex Dividend Reinvestment Alternative and Cash Dividend Wednesday, 3 June
Record Date Friday, 5 June
Listing of maximum possible number of Shares to be issued under the Dividend Friday, 5 June
Reinvestment Alternative
Offer closes. Last day to elect to receive the Dividend Reinvestment Alternative by Friday, 5 June
12:00 on
Electronic payment and CSDP/broker accounts updated in respect of Cash Dividend Monday, 8 June
on
Announcement of the results of the Dividend Reinvestment Alternative and Cash Monday, 8 June
Dividend on SENS
Share certificates posted and CSDP/broker accounts updated in respect of the Wednesday, 10 June
Dividend Reinvestment Alternative on
Adjustment of number of new Shares listed on or about Friday, 12 June
Notes:
1. Share certificates may not be dematerialised or rematerialised between Wednesday, 3 June 2026 and
Friday, 5 June 2026, both days inclusive.
2. The above dates and times are subject to change. Any changes will be announced on SENS.
3. All times quoted in this announcement are South African times.
The dividend amount, net of South African dividend tax of 20%, is 35.65920 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
509 312 701 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 35.65920 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. It contains only a summary of the
information in the audited annual consolidated financial statements for the year ended 28 February 2026 ("Full
AFS") and does not contain full or complete details. The Full AFS can be found at:
https://senspdf.jse.co.za/documents/2026/JSE/ISSE/SEAE/SEAFY26.pdf
A copy of the Full AFS is also available for viewing on the Company's website at
https://spearprop.co.za/pdf/investor-relations/SEAFY26.pdf. In addition, electronic copies of the Full AFS 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 AFS,
as a whole.
The Company has based this announcement on information extracted from the audited consolidated financial
statements of Spear for the year ended 28 February 2026. BDO South Africa Inc., the Company's external
auditor, expressed an unmodified audit opinion on the audited consolidated financial statements in their report
dated 15 May 2026. The full audited annual consolidated financial statements are available on the Company's
website at https://spearprop.co.za/investor-communications/financial-results/
6. RESULTS PRESENTATION
Shareholders are invited to view Spear's annual results presentation to be broadcasted on YouTube at 09h00
SAST today, 18 May 2026.
Presentation details:
- View and listen mode;
- Link: https://youtube.com/live/f7AwWIVlqng?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
18 May 2026
Sponsor
PSG Capital
Date: 18-05-2026 07:05:00
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