| A very quiet week ahead on the corporate front We look forward to a busy week of local releases including: Stor-Age Property REIT – (FY25 Results): In 4M25, Stor-Age reported a 1.5% increase in occupancy across its South Africa-owned portfolio, reaching 93.5%, with average rental rates up 7.8% y/y. Despite a weak UK economy, the owned portfolio remained resilient, posting a slight 1.1% drop in occupancy but a year-to-date gain of 1.5%, and a 4.1% y/y rise in rental rates. New JV properties saw strong growth, with occupancy up 22.8% in SA and 6.5% in the UK. Management guided for FY25 distributable income of 122 to 126 cents per share (+3.2% to +6.6%) and lowered the payout ratio to 90% to 95% (from 100%) due to uncertain market conditions.Vukile Property Fund – (FY25 Results): In a recent pre-close update, management guided for 6.4% like-for-like net operating income (NOI) growth in the South African retail portfolio, supported by sustained high occupancy, added solar capacity, and operational cost savings, including lower diesel costs. Castellana delivered ~2% like-for-like NOI growth, with an upward trend. Management reaffirmed FY25 guidance for funds from operations (FFO) per share growth of 2% to 4% and a 6% rise in the distribution per share, with preliminary FY26 guidance indicating at least 6% growth in both metrics.On the corporate actions front, Master Drilling Group, Vodacom, Super Group, Barloworld, Burstone Group, Emira Property Fund, Dis-Chem Pharmacies, and Raubex Group will trade ex-dividend on Wednesday, 18 June 2025.Next week will be quiet across all major international markets.Economics Weekly – Revisiting the divergence between estate agent sentiment and mortgage volumesSince the beginning of the current interest rate cutting cycle, mortgage lending has remained underwhelming. In the seven months leading up to the first rate cut, outstanding mortgage balances grew by an average of 2.8%, according to the South African Reserve Bank’s data. In the seven months following the cut (data-to-date), growthslowed to just 2.3%. When adjusted for house price inflation, these figures drop to 2.1% before the cut and a mere 0.7% afterward. Please see the full publications attached |
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