Double-digit growth for township and rural retail landlord Exemplar

Township and rural retail property group Exemplar REITail has continued to prove the resilience of the under-serviced consumer economy, declaring full-year distribution of 176.9 cents per share for the year ended 28 February 2026.

This represents a 15.3% growth surge compared to the prior year, highlighting an impressive 11.8% compound annual growth rate in distributions since the company first listed on the JSE in 2018, the company said in releasing its latest results on Monday.

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While the broader South African commercial property landscape battles high vacancies and muted growth, Exemplar’s targeted focus on rural and township retail hubs has yielded impressive operational returns. The group’s net property income advanced 13.1% to R978 million, an upward trajectory driven by sustained, non-discretionary consumer demand across its asset footprint.

The operational health of the fund is further reflected across its key balance sheet performance metrics:

Asset valuation: The total property portfolio was independently valued at R11.24 billion at the close of the financial year.
Low vacancies: The group maintained a ‘rock-bottom’ portfolio vacancy rate of just 2.64%.
Balance sheet headroom: Exemplar’s loan-to-value (LTV) ratio stood at a conservative 36.6%, giving the fund debt headroom to support its ongoing development cycle.
Earnings strength: Basic earnings per share climbed 26.8% to 424.1 cents, headline earnings per share (Heps) rose 7.8% to 153.4 cents, and the net asset value per share increased 15.3% to R19.25.

The property counter declared a final dividend of 75.61c per shared for FY2026, compared to 66.05c for FY2025. Together with its interim dividend, the group’s total dividend for its latest financial year came to 160.53c per share.

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Exemplar CEO Jason McCormick emphasised that the group’s focused strategy remains the bedrock of the company’s long-term performance.

“Through disciplined development and investment in township and rural retail assets, we have consistently delivered on our core mission to create long-term, sustainable value for all stakeholders,” said McCormick.

Expansion and redevelopments

Exemplar said in its annual results release that it has rapidly deployed its balance sheet capacity into targeted acquisitions and major expansions to consolidate its grip on key high-performing retail nodes.

Following its late-2025 acquisition of a 50% stake in Tonk Meter Crossing in Springs, Gauteng, the group has pushed ahead with an expansion project to take the asset to over 21 200m². The newly redeveloped, upscaled mall is officially scheduled to launch in September 2026 under the new name iTonka Square.

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The fund’s post-year-end activity has added further scale, pushing its total owned and managed portfolio to over 700 000m² across six provinces, while increasing its total Gauteng retail footprint to 11 shopping centres.

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In April 2026 alone, Exemplar completed two major asset purchases, both secured at an initial property yield of 9.3%:

Vosloorus Crossing (Gauteng): The group acquired this 10 323m²  retail centre, which sits directly adjacent to its flagship Chris Hani Crossing Mall.
Steelpoort Retail Precinct (Limpopo): The group snapped up a 50.38% controlling interest in this existing 27 787m² centre. Exemplar has already earmarked the precinct for a massive expansion project to increase its size to approximately 43 000m².

Reflecting on the group’s expansion pipeline, McCormick noted that these capital allocation decisions are highly intentional.

“Beyond simple acquisitions, these are deliberate, accretive investments focused on deepening our presence in key high-growth nodes and improving asset quality through considered redevelopment of the sites.

“It is through the strength of our portfolio that we aim to consistently grow returns and ensure continued value for our stakeholders.”

Exemplar’s share price

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