Fairvest (FTA) Trading update summary

Operational performance and strategy

• Portfolio expanded to 132 assets valued at R14.2 billion, with GLA of 1,088,497m² and a stable vacancy rate of 5.1%.

• Retail revenue share increased to 71.4%, with average gross rental per m² rising to R142.96; retail portfolio expanded by 34,000 sq m, now at 79 properties and 606,258m² GLA.

• Tenant retention improved to 84.3% overall, with retail at 86.3%, office at 84.3%, and industrial at 81.5%.

• Positive rental reversions: retail 4.9%, office 6.0%, industrial 8.7%; weighted average lease escalations: retail 6.5%, office 7.1%, industrial 7.2%.

• Vacancy rates stable at 5.1%, forecasted to drop below 4.5% by year-end; retail vacancy at 4.3%, office at 8.6%, industrial at 4.2%.

Financial position and capital management

• Market capitalization increased to ZAR 15.8 billion; balance sheet remains robust and conservative.

• Loan-to-value expected below 27% at year-end, with fixed debt component above 60%.

• ZAR 900 million raised via accelerated bookbuild in April 2026; inaugural bond auction scheduled for 29 September 2026, targeting ZAR 500–750 million.

• National scale long-term credit rating of zaAAA assigned by S&P Global Ratings.

• All bank covenants expected to be comfortably met, with strong access to funding and unencumbered assets.

Investment activity and portfolio growth

• Acquired Jozini Mall and Tugela Ferry Mall for a combined R702 million at a 10.17% yield; pipeline of assets with yields between 9.5% and 10.25%.

• Township Fibre Infrastructure Investment reached R1.2 billion, delivering approximately 15% return on capital; board approval up to ZAR 1.5 billion.

• Dipula investment reduced to 20.1%; capital allocation prioritized for direct acquisitions, with Dipula assessed on merit.

• Dipula investment has contributed to earnings and capital growth, but future allocation will be carefully managed.

• Disposed of Voortrekker Xchange office property for R65 million in January 2026.