Chamwe Kaira
The Johannesburg Securities Exchange (JSE) and the Namibia Stock Exchange (NSX) have listed Vukile Property Fund, which expects double-digit dividend growth in 2027 as the company expands its property portfolio in South Africa, Spain and Italy.
In an update to shareholders, the real estate investment trust confirmed its earnings and dividend guidance for the financial year ended 31 March 2026.
Vukile said it expects funds from operations (FFO) and dividend per share growth of 9.3% for the 2026 financial year, in line with guidance issued during its March pre-close presentation.
For the 2027 financial year, the company expects FFO per share growth of between 8% and 10%. It also plans to increase its dividend payout ratio from 83% to 85%, which is expected to lift dividend growth to between 10% and 12%.
The company said the outlook is supported by strong operational performance and contributions from acquisitions completed in South Africa and Spain, as well as planned expansion into Italy.
Vukile said the guidance assumes no major changes in exchange rates, interest rates or trading conditions. The company used a forecast exchange rate of R19.60 to the euro in its projections.
In Namibia, Vukile owns a 36% stake in MICC Properties. The company said its Namibian property assets are valued at about N$1 billion.
The portfolio includes 269 Independence in Windhoek, Katutura Shopping Centre and retail centres in Ondangwa, Oshakati and Oshikango.
The group also disclosed that its Spanish subsidiary, Castellana Properties SOCIMI, received revised tax assessment notices from Spanish tax authorities linked to the 2021 to 2023 financial years.
The assessments propose additional taxes and interest of about €8 million linked to the application of a 19% special levy on dividends attributable to shareholders holding less than a 5% stake in Vukile.
Castellana said it obtained two independent legal opinions from Spanish tax advisers, both concluding that the proposed assessments are inconsistent with Spanish SOCIMI legislation and previous binding tax rulings.
The subsidiary said it intends to challenge the assessments through administrative and judicial channels.
Vukile said its board considers the possibility of additional taxes becoming payable to be remote. Further details will be included in annual financial statements scheduled for release on 17 June 2026.
On acquisitions, Vukile said it has already deployed the R2.65 billion raised through its October 2025 equity capital raise, together with proceeds from the sale of Castellana’s retail park portfolio valued at about €280 million.
The company confirmed it completed acquisitions of the Berceo, Islazul and Splau shopping centres in Spain.
In South Africa, Vukile completed the acquisition of a 50% stake in Chatsworth in December 2025. It also signed agreements to acquire Botshabelo Shopping Centre for R432.5 million.
The Botshabelo transaction is currently before the Competition Commission and is expected to close in July 2026.
Vukile also announced plans to enter the Italian retail property market through a platform anchored by its 35% stake in Pradera Limited, acquired in December 2025.
The company said it is in the final stages of acquiring three shopping centres in Italy with a combined gross asset value of €115 million at an expected yield of about 10%.
According to Vukile, Italy offers stable economic conditions, resilient consumer spending and limited new retail property supply, creating favourable conditions for retail property owners.
The company said future acquisitions in Italy will be funded through proceeds from the equity capital raise.
