South African real estate investment trust Redefine Properties has raised its earnings guidance for the 2026 financial year after reporting stronger interim distributable income growth, supported by improving property fundamentals across its South African and Polish portfolios.
The JSE-listed landlord increased guidance for distributable income per share growth to between 6% and 7%, up from its previous forecast of 5% to 6%, after distributable income rose 7.4% for the six months ended February 28.
Chief executive Andrew König described the operating environment as a recurring “game of snakes and ladders”, citing repeated macroeconomic and geopolitical disruptions that have periodically interrupted the sector’s recovery.
Despite ongoing uncertainty linked to tensions in the Middle East, König said Redefine’s operational metrics continued improving, translating into stronger earnings momentum.
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Boosted by Polish growth
Occupancy across the group’s South African portfolio improved to 94.2%, while occupancy at its Polish logistics platform, ELI, increased to 98.7%.
Retail assets remained among the strongest performers locally, with occupancy rising to 95%, trading density increasing 3%, and renewal reversions turning positive at 3%. Office occupancy improved to 88.9%, although renewal reversions remained under pressure at negative 15.8%. Industrial assets continued outperforming, with occupancy reaching 97.2% and rental reversions increasing 4%.
Chief operating officer Leon Kok said property value improvements were driven mainly by stronger income performance rather than changes in valuation assumptions.
The group also expanded its renewable energy initiatives, increasing installed solar photovoltaic capacity by 7% to 62MWp while advancing electricity wheeling agreements.
Meanwhile, Poland continued contributing strongly to earnings growth despite the impact of a firmer rand on reported offshore asset values.
Chief financial officer Ntobeko Nyawo said the group’s hedging strategy helped cushion currency-related pressure, while refinancing activity strengthened its balance sheet and extended debt maturities.
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