October 20 2025 21:00
Quintin Rossi, CEO of Spear Reit
JSE-listed Spear Reit continues to maintain its position as a reliable property fund and investment. The group delivered a 5% increase in distribution per share at the halfway stage of its financial year. It also maintained its full-year guidance at a growth rate of between 4% and 6%, the group reported on Monday.
Spear which invests in Western Cape real estate, said its distributable income per share rose 5.1% to 43.78c, while its distribution per share was 5.21% higher at 41.59c..
Spear which listed on the JSE’s AltX nearly a decade and then moved to mainboard of the bourse, has gradually built a property portfolio worth R5.7bn. The group has recently spent time rationalising its portfolio which effectively grew R1bn in value during the reporting period.
Spear focused on the Western Cape years back because of the strong investment case it offered and still offers relative to other provinces. Some businesses moved their head offices to Cape Town while industries have chosen to operate from the City. Young professionals are also ‘semigrating’ to the Western Cape.
Spear achieved its acquisitions at an average yield of 9.54% higher than its average cost of capital. Certain acquisitions will transfer during the second half of the group’s financial year to end-February 2026.
While Spear has operated comfortably as a small to medium property real estate investment trust (Reit), CEO Quintin Rossi said the company would scale to R15bn in assets under ownership with a market capitalisation of R9bn by 2035. Market capitalisation refers to a company’s value according to the stock exchange upon which it is listed.
Spear was considering acquiring another R300m worth of potential acquisition opportunities within its financial year. It also had a “very healthy development pipeline of around 90 000 square metres”. The group was not forced to do deals but would take advantage of any potential well-priced opportunities.
Spear owns properties in the office, industrial and retail sectors. The group’s is developing multi-use properties in the semi-industrial area of Paarden Eiland for example and is also spreading its asset base deeper into George.
alistair@propertyflash.co.za
