The JSE’s Unique Company That Grew from R1 Billion to R28.7 Billion in 12 Years

South African property company Equites Property Fund has grown its portfolio from R1 billion when it listed on the Johannesburg Stock Exchange (JSE) in 2014 to R28.7 billion in 2026.

The company has built its business around logistics property, including warehouses and distribution centres used by major retailers, transport companies and other businesses. Its specialised focus has set it apart from other listed property funds in South Africa.

According to a report by Daily Investor published on 24 October 2026, Equites remains the only specialised logistics real estate investment trust (REIT) listed on the JSE. Its growth has been supported by acquisitions, property development and demand for modern distribution infrastructure.

Equites was founded in 2013 through the merger of three independent property developers based in the Western Cape. The combined business had a property portfolio valued at approximately R1 billion when it listed on the JSE in June 2014.

The listing gave the company access to capital that it could use to acquire additional properties and develop new facilities.

One of its early major acquisitions came in 2015, when it bought Intaprop for R1.9 billion. It also expanded by developing warehouses for large retailers and logistics operators.

Among its early projects was a 26,000 square metre distribution warehouse for The Foschini Group in Midrand, completed in 2016 at a cost of R150 million.

These investments helped establish Equites in a property segment that has become increasingly important as retailers and logistics businesses seek efficient ways to store and distribute goods.

Equites focuses on logistics properties that allow businesses to store goods and move them efficiently through their supply chains.

These facilities have become increasingly important as online shopping, large-scale retail distribution and transport networks require more modern warehousing infrastructure.

Instead of relying on traditional shopping centres and office buildings, Equites concentrates on industrial properties used by logistics operators and major retailers.

Its tenants include Shoprite, DSV Solutions, The Foschini Group, DHL, Digistics and PepsiCo. Shoprite Checkers alone accounted for approximately 22% of the company’s revenue, while DSV Solutions contributed around 16%, according to Daily Investor.

Equites also focuses on securing tenants before beginning many of its developments. This approach, known as pre-letting, helps reduce the risk of constructing a warehouse that remains vacant after completion.

The company has also used sale-and-leaseback transactions, in which it buys an existing logistics property from a business and leases it back to that business. The arrangement gives the seller access to capital while providing Equites with an established tenant.

Equites’ growth has not been limited to South Africa. Following its JSE listing, the company expanded into the United Kingdom, seeking to diversify its income and benefit from international demand for logistics properties.

However, rising interest rates, higher financing costs and weaker rental growth made the UK portfolio less attractive.

The company began withdrawing from the market in 2022, gradually selling assets and redirecting capital towards South Africa.

In May 2026, Equites completed the sale of its five-property Aviva portfolio for £200.5 million, equivalent to approximately R4.39 billion at the time. The transaction generated about £95 million in cash after associated debt was settled.

By August 2026, the company had three UK properties remaining and was progressing towards a complete exit. It intends to reinvest the proceeds into its South African logistics portfolio.

The company’s latest interim results show how this shift is unfolding.

For the six months ended 31 August 2026, Equites reported distributable earnings of R630.1 million, up 10.5% from the same period a year earlier. Headline earnings per share increased by 67.2% to 88.9 cents.

The company declared an interim distribution of 72.57 cents per share, an increase of 5.1%, and reaffirmed its full-year distribution guidance of between 147.7 and 150.5 cents per share.

Equites spent R600 million on developments and acquisitions in South Africa during the period. Its latest results also reported six developments under way, representing R2 billion in projected capital value upon completion, with R1 billion in remaining expenditure.

These projects are expected to deliver development yields of between 8% and 9%.

The company’s balance sheet also strengthened during the period. Its loan-to-value ratio declined from 35.1% in February 2026 to 28.1% at the end of August, while cash and undrawn facilities totalled R2.9 billion.

Equites’ journey from a R1 billion portfolio at listing to R28.7 billion in February 2026 illustrates the scale of its expansion over 12 years.

However, that R28.7 billion figure is not its latest portfolio valuation. Following the sale of its UK properties, the total portfolio value stood at R25.4 billion at the end of August 2026. The decline primarily reflected asset disposals rather than a deterioration in the South African portfolio.

The company’s next phase will depend on how successfully it deploys the capital released from its UK exit, completes its South African developments and maintains demand for its warehouses.

Its specialised focus on logistics property has differentiated it from other JSE-listed property funds. But continued growth will depend on disciplined investment, tenant demand, financing costs and the returns generated by its new developments.

For South Africa’s logistics sector, Equites’ expansion highlights the growing importance of the warehouses and distribution facilities that keep retailers and supply chains operating.

Sources: The only company of its kind on the JSE went from R1 billion to R28.7 billion in 12 years – Daily Investor

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