SA Corporate Real Estate, South Africa's largest listed residential rental property owner, has reported a 7% increase in first-half distributable income per share to 13.92c. This growth was driven by strong apartment sales and resilient demand across its portfolio. The company's operating conditions continued to support high occupancy and rental growth in its residential portfolio. Its logistics portfolio also attracted demand, contributing to the positive performance.
The group increased its dividend by 7% to 13.92c a share, maintaining a 92.5% payout ratio for the six months to end-June. SA Corporate Real Estate attributed the improved performance to various factors, including Eskom's sustained period of no load-shedding, which improved business continuity and lowered costs. However, gains were offset by the Middle East conflict and Strait of Hormuz disruptions, which pushed up oil prices and pressured the rand and bond yields.
The residential portfolio delivered rental growth above inflation, supported by high occupancy and steady demand for well-located, professionally managed homes. Following the acquisition of The Parks Lifestyle Apartments in December 2025 and continued organic growth, residential assets now account for about 49% of the group's South African portfolio. This strengthened SA Corporate Real Estate's position as the country's largest listed residential rental owner.
The residential division, Africa Housing Company (Afhco), continued to underpin the residential portfolio with its property management and apartment sales platforms. Non-core units were sold into the retail market above cost, allowing the group to extract further value from its scaled residential portfolio. This strategy supports the company's goal of optimizing its residential portfolio.
Retail leasing activity remained focused on grocery, convenience, and experiential tenants, supporting resilient trading across the portfolio. Trading densities grew during the period, led by grocery anchors. Residential vacancies improved in the first half of 2026, averaging 3.3%, or 3.8% including student accommodation. This reflects sustained demand for well-located, professionally managed rental homes.
SA Corporate Real Estate's Zambian portfolio delivered strong underlying growth, with net property income rising 12.6% in US dollar terms. This was supported by higher occupancy and stronger trading at Arcades Shopping Mall. Distributable income rose 10.8%, demonstrating the company's ability to drive growth in its international portfolio.
Looking ahead, SA Corporate Real Estate's leasing team will focus on converting signed deals into occupied spaces in the second half. The company aims to backfill remaining vacancies with convenience-focused offerings that strengthen the overall tenant mix. A revamp is planned at Town Square for 2027, which is expected to further support the portfolio's tenant mix and vacancy trajectory.
Key points
- SA Corporate Real Estate reported a 7% increase in first-half distributable income per share to 13.92c.
- The company's residential portfolio delivered rental growth above inflation, supported by high occupancy and steady demand.
- SA Corporate Real Estate's Zambian portfolio delivered strong underlying growth, with net property income rising 12.6% in US dollar terms.
