Equites Property Fund (EQU) Pre-close call summary

Executive summary

• FY 2026 delivered solid earnings growth, building on prior groundwork and positioning for future expansion, with enhanced funding flexibility and capital readiness.

• Significant development activity included ZAR 900 million spent and major wins such as the Tiger Brands build.

• Foundations established during the year enable accelerated development and sustained long-term value.

• Optimism in the logistics sector, with demand drivers at an all-time high and low vacancy rates.

Trading performance and revenue trends

• Six lease renewals and three new leases signed, with major development lease secured with Tiger Brands and advanced negotiations for 150,000 sq m of new GLA.

• UK operations saw successful asset sales, including DPD Burgess Hill for £17.65m at a 5% yield, repatriating equity and repaying debt.

• Asset management fees are becoming a more meaningful revenue stream, diversifying income.

Profitability and margins

• Weighted average lease escalation at 6.2%, supporting inflation-beating distributable income growth.

• Positive reversion of 17% expected on six leases expiring in FY 2027, with a negative reversion of 9% anticipated for FY 2028 expiries.

• Triple net leases and disciplined development strategy help insulate from operating cost inflation.