Dipula Properties concluded R3bn in property deals in the year to end-August. The real estate investment trust (Reit) expanded its retail and industrial holdings and continued to sell assets outside its core focus.
The largest deal is the R2bn purchase of nine shopping centres from the Moolman Group and its co-investors, announced in August. It has Competition Commission approval, and transfers are expected to start towards the end of November. Once they are complete, Dipula’s assets will be worth almost R14.5bn, up from R11.5bn in February. To help fund the purchase, the group raised R1.1bn in new equity through a private placement, and the new shares began trading on the JSE on 1 September.
Dipula added 14 properties during the year. They include Protea Gardens Mall in Soweto, bought for R480m, Woolworths Gezina, Bayer Klerksdorp, Airborne Business Park and Birch Acres Square in Tembisa. Birch Acres cost R145m and transferred in July. The group sold 20 noncore properties, several of them offices, for R200m. After year-end, it agreed to sell all but one of its remaining noncore residential properties for R268m.
| Dipula results, year to 31 August 2026 | Result | Change |
|---|---|---|
| Distributable earnings per share | 62.17c | Up 8.6% |
| Headline earnings per share | 63.86c | Up 20% |
| Dividend per share | 55.96c | Up 8.6% |
| Revenue (excluding straight-lining) | R1.7bn | Up 11% |
| Net asset value per share | R7.95 | Up 6% |
| Gearing | 31.8% | From 34.9% |
| Market capitalisation | n/a | Up 70% |
Growth in distributable earnings per share beat guidance of 7% to 8%, which the group had raised from 7% at the interim stage. Dipula’s market capitalisation rose 70% after it joined the FTSE/JSE All Property Index and the SA Reit Index in March. Gearing fell despite the acquisitions. In February the group had refinanced part of its debt at lower rates and extended its debt maturities.
Chief executive Izak Petersen said underserved regions such as Limpopo hold significant retail potential. Gauteng, where most of the group’s properties are located, is nearing saturation. Retail will account for almost 80% of income once the Moolman deal is complete, and office exposure is expected to fall below 10% soon.
Nedbank senior analyst Ridwaan Loonat noted that earnings growth picked up from 5% the previous year and that debt stayed under control despite the acquisitions. He said lower borrowing costs had supported the result. He expects recent acquisitions to lift earnings further once they contribute for a full year. Dipula has guided growth in distributable earnings per share of 8% to 10% for the 2027 financial year.
The results come after a strong run for listed property. SA Reits delivered a total return of 38.6% in 2025, after 35.8% in 2024, as interest-rate cuts lowered funding costs. Conditions have since become less supportive. The Reserve Bank raised the repo rate by 25 basis points to 7% in May, ending its easing cycle, and left it unchanged in July after inflation reached a two-year high. Even so, the sector returned 7.8% in the first seven months of 2026, and distributions grew 10.6% over the rolling 12 months.