Dipula Properties completed the busiest year of acquisitions in its history during the 2026 financial year. The company bought 14 assets worth R3bn and raised R2bn in new equity. This dealmaking helped the JSE-listed diversified Reit grow its dividend faster than it had forecast.

Strategic Expansion and Portfolio Changes

Dipula’s distributable earnings saw a 22% increase to R636m, resulting in earnings per share of 62.17c, which represents an 8.6% rise from the previous year. The company’s payout ratio remained steady at 90%. Looking ahead to the 2027 financial year, Dipula anticipates per-share growth of 8% to 10%.

Moolman Deal Marks Largest Acquisition

Its largest transaction to date was announced shortly before year-end. Dipula agreed to buy nine shopping centres from the Moolman Group and its co-investors for R2bn. The centres are spread across four provinces and have a combined gross lettable area of 89,168 square metres.

The Moolman deal has garnered approval from the Competition Commission, with the properties expected to transfer to Dipula by the end of November 2026. Other notable acquisitions include Protea Gardens Mall in Soweto, purchased for R480m, as well as properties in Pretoria, the North West Province, and Tembisa, such as Birch Acres Square, which was acquired for R145m.

Dipula’s August 2025 announcement of five deals worth approximately R700m, including the Protea Gardens Mall acquisition, marked a significant expansion of its national retail presence and geographic diversification. This move reinforced the company’s focus on convenience, township, and rural shopping centres, providing everyday shopping accessibility to local communities.

While the group’s total distributable earnings grew by 22%, per-share growth lagged at 8.6% because the company issued new shares to fund the acquisitions. As income from the newly acquired assets comes through, management expects per-share growth to pick up.

A key moment for Dipula occurred in March 2026 when it was included in the FTSE/JSE All Property Index and the SA REIT Index. This index inclusion introduced the company to a broader pool of institutional investors and index-tracking funds, contributing to a positive reassessment of Dipula’s share price.

Dipula’s market capitalisation experienced a 70% growth during the year, while its net asset value increased by 20%. The company’s ability to raise R2bn in new equity demonstrates market support for its strategy. The combination of acquisitions and capital raising resulted in a 6% increase in net asset value per share.

The Public Investment Corporation bolstered its stake in Dipula during the year, holding more than 13% of the company’s issued ordinary shares by April 2026.

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Selling Non-Core Assets to Focus on Retail

Dipula has been selling property as well as buying it, using asset recycling to sharpen its focus on retail and industrial property. During the year it sold 20 non-core properties for R200m. After year-end, it signed an unconditional agreement to sell all but one of its non-core residential properties for R268m.

The deals have also widened Dipula’s geographic spread, with Gauteng’s share of the portfolio falling from 58% to 54% since the start of the financial year. At year-end, the portfolio comprised 152 properties covering nearly 900,000 square metres across South Africa. The portfolio’s value rose 13% to R12.2bn. This growth was driven by a 6.5% like-for-like increase in valuations, proactive asset management and the acquisitions that transferred during the year.

Retail property in township, rural and urban convenience locations made up 68% of portfolio value. Logistics and industrial property accounted for 15% and offices for 14%. The small non-core portfolio of affordable residential property made up 3%.

Revenue excluding straight-lining rose by 11% to R1.7bn. Cost containment and improved recoveries remained priorities. The total cost-to-income ratio declined marginally to 42.6%. Leasing was strong. The number of new leases signed rose by 20%, which helped reduce vacancies.

Total portfolio vacancies fell to 6% from 8.5% a year earlier. Retail vacancies fell to 4.5% from 5.1%. Vacancies in the much smaller office portfolio fell to 21.7% from 26.4%. Tenant retention improved significantly, from 76% to 85%. Retail and industrial, the two largest sectors, achieved retention of 87%.

Balance Sheet Strengthens Amid Buying Spree

One of the most notable features of the results is that Dipula’s balance sheet got stronger during its buying spree. Gearing fell to 31.8% from 34.9%, and the interest cover ratio improved to 3.2 times from 2.8 times. Dipula also refinanced R2bn of debt at more competitive margins, which lowered its net finance costs and extended its debt maturity profile.

Dipula also invested in the properties it already owns. It spent R122m on refurbishments and redevelopments to maintain and improve the quality of its portfolio. A further R250m of capital expenditure is planned over the next 12 to 18 months.

Tripling Solar Capacity to Cut Costs

The company more than tripled its installed solar PV capacity, from 5,300kWp to 17,500kWp. This helped raise Dipula’s avoided carbon emissions by 50% year on year and contain costs. This is an important benefit for landlords and tenants given South Africa’s history of unreliable electricity supply and steep tariff increases.

Dipula expects to add another 6,000kWp to 8,000kWp of solar capacity in the 2027 financial year. Its water-saving, waste management and biodiversity programmes also support the long-term sustainability of the portfolio.