Vukile Property Fund, the specialist retail estate investment trust, has forecast a dividend uplift of at least 6% after a year of strong growth and it is now moving towards a period of integration and value extraction from its assets in South Africa and in the Iberian Peninsula.
The group, with gross assets in South Africa, Spain, and Portugal now exceeding R50 billion, saw its Spanish-held subsidiary Castellana Properties grow its asset base in Spain and Portugal by nearly 60% over the past year to March 31, 2025.
The investment in Lar Espana was exited at €82 million profit, while the capital was redeployed to acquire the Bonair Shopping Centre in Spain’s Valencia province.
Adding a new engine of growth, Vukile entered Portugal with four retail acquisitions, and a fifth deal was well advanced and already funded, the group said in a pre-close statement on Monday.
In the previous financial year, Vukile had increased its total dividends by 10.5% to 124.2 cents. It previously guided dividend growth of 4% to 6% for the 2025 financial year.
“Vukile remains open to opportunities, but will prioritise deepening value within its current footprint; for the time being, we don’t expect to raise capital,” CEO Laurence Rapp said in a statement.
All in all, the Iberian portfolio grew around 60% over the 12 months, cementing Vukile’s dominant position across two of Europe’s strongest economies − Spain and Portugal. Approximately two-thirds of Vukile’s assets and 60% of earnings are now offshore.
In South Africa, Vukile acquired a 50% stake in Mall of Mthatha (formerly BT Ngebs) in May 2024, where early turnaround performance exceeded expectations. The mall’s vacancy rate has decreased dramatically to just 1.8% from 18%. Its South Africa portfolio includes Pine Crest Centre, East Rand Mall, Bloemfontein Plaza and Phoenix Plaza.
“With a well-hedged balance sheet, minimal near-term debt expiries of just 2% maturing in the 2026 financial year, and strong liquidity, Vukile is closing the 2025 financial year in an exceptionally positive position,” said Rapp.
Vukile’s share price was unchanged at R17.36 on the JSE on Monday afternoon, a price that was 16.1% higher than the R14.93 it traded at a year before.
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