Thursday, 16 October 2025
The first half of 2025 proved strong for Equites Property Fund, which continues to benefit from growing appetite for high-quality logistics space across South Africa. The company reported a solid increase in earnings and asset value, supported by resilient rental income, active portfolio management, and the steady expansion of its development pipeline.
Over the past six months, Equites increased its distributable income, strengthened its balance sheet, and maintained one of the lowest vacancy levels in the local listed property sector. The fund’s portfolio value climbed above R28 billion, boosted by development completions, fair-value gains, and a healthy pipeline of new tenants. Chief Executive Andrea Taverna-Turisan said the business is now firmly positioned to deliver growth that outpaces inflation while keeping leverage at sustainable levels.
The group continued to rebalance its holdings, selling older and non-core properties while deploying proceeds into newer, energy-efficient developments. Recent disposals included several South African assets and one in the United Kingdom, with the company signalling a gradual exit from the UK market to focus more capital on domestic projects offering higher returns.
In South Africa, demand for premium warehousing remains robust as retailers, manufacturers and logistics operators invest in modern distribution infrastructure. Equites is currently developing new facilities in Meadowview and Riverfields, including a large-scale project for a JSE-listed consumer goods company, which will serve as a new regional logistics hub.
Despite higher interest rates, the company managed to lower its overall financing costs while maintaining healthy liquidity. It also repurchased shares during the period, taking advantage of a discount to asset value to enhance shareholder returns.
Sustainability continues to play a central role in the group’s investment strategy. Solar generation capacity has expanded to more than 27 megawatts across its portfolio, and additional rooftop systems and water-efficiency projects are in progress. The company has also introduced new biological treatment technology to reduce dependence on municipal water networks.
Equites’ management expects the second half of the year to build on this momentum, driven by continued rental growth, high tenant retention and new long-term lease agreements. With a portfolio largely occupied by blue-chip clients on extended leases, the fund remains one of the most stable income generators in the listed property sector.
Photo: Andrea Taverna-Turisan, Chief Executive Officer at Equites Property Fund Limited
