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Wed 26 Nov 2025
Close: 1 453c 
Day's move: 24c (1.68%)
Volume: 107 660
Trades: 70
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Revenue for the period rose to R2.2 billion (R2.1 billion) with profit before finance cost ending higher at R886 million (R606.7 million). Profit for the year and total comprehensive profit attributable to shareholders increased to R491.1 million (R216 million). Additionally, headline earnings per share inclined to 163.4c per share (141.9c per share).
Dividends
The board of Octodec has declared a cash dividend of 72.50175 cents per share for the six months ended 31 August 2025, payable out of the company's distributable income.
Company prospects
Business confidence appears to have improved, with Octodec experiencing an increase in leasing activities, evidenced by the reduced core vacancies, which is supported by the relatively stable political environment, lower inflation and lower interest rates. The lower inflation experienced during FY2025, together with the Governor of the South African Reserve Bank's (SARB) stated objective of reducing the long-term CPI target and consequently potentially lower interest rates, may provide increased support for growth opportunities both at a macro and at an Octodec level.
Management does not expect deep rate cuts, even with the new SARB target, but is cautiously optimistic about the opportunities that any reduction can create, such as the recent 0.25% interest rate reduction announced on 20 November 2025.
The board and management have undertaken a strategic review of the property portfolio in order to focus its asset management on a portfolio that can yield increased returns yet remain invested in a well-diversified quality portfolio. The Board approved a refreshed strategy, which includes a more resolute but responsible rationalisation of the property portfolio and consideration of the nodes in which Octodec invests. Lower interest rates will support Octodec in its strategy to dispose of non-core properties and rationalise the portfolio.
FY2026 will present the added challenge of the vacant space left by the City of Tshwane at Capitol Towers North (CTN) and Transpharm at Talkar (together 18 959m2). The new Yethu City concept may however present Octodec with the opportunity to convert the CTN property into this new affordable residential offering, as it is unlikely that this 12 086m2 will be otherwise let in the short to medium term. The Talkar property is being marketed for relet, and management will also consider a disposal thereof given that its location is no longer within the investment node of Octodec.
Despite improved trading conditions, challenges remain. The lower inflation and reduced interest rates however should support the economy and create opportunities for Octodec in the long term.
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| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
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