September 25 2025 19:00
Tightly-held and illiquid small-cap stock, Texton Property Fund managed to achieve a distribution of R490m in the year to end-June 2025.
The group which has a market capitalisation of R990m, said it had strengthened its balance sheet during the reporting period. The group which has has numerous CEOs over the past decade and which lost the support of numerous financial institutions in that time, is now focused on renting office space to SMEs and to owning self storage properties. It owns assets in SA, the UK and the US.
During the reporting period, it sold three assets, two of which were in the UK and one in South Africa, earning R364.3m, with proceeds earmarked for debt reduction.
The company’s core vacancies increased slightly from 7.7% in the 2024 financial year to 8.6% as of June 30 2025. On a like-for-like basis, net property income (NPI) in SA was flat at R127.4m for the year compared with R125.9m in 2024.
Its UK assets recorded a decrease in net property income (NPI) by R19.7m, mainly because of the disposal of Gainsborough and Peterlee, while the addition of its North Carolina asset in the USA contributed R5.6mto NPI.
The company said its debt reduction of R278.2m, along with lower interest rates, had helped net finance costs, which fell R28.5m.
Its distributable income decreased from R79.9m in the 2024 to R73.8m in 2025, because of the sale of properties during the latter part of the 2024 financial year and early part of 2025 year.
Texton paid a dividend of 20.12 cents per share and a Return of Contributed Tax Capital (CTC) of 79.8 cents per share, for a total distribution of R1 per share. Post year-end, it declared a further Return of CTC of 63.87 cents per share, bringing the total distribution for the period to 163.87 cents per share and amounting to a total distribution of R490m.
Numerous minority shareholders want Texton to delist in the near future.
alistair@propertyflash.co.za
