Latest news with #Spear
IOL News
26-05-2025
- Business
- IOL News
Spear REIT expands Western Cape portfolio as distributions grow and forecast brightens
Spear REIT's Northgate Park office building in Cape Town. The Western Cape focused group has seen strong demand and lower vacancies for its office portfolio in its 2025 financial year, driven by declining availability and high development costs in the Cape Metropolitan area. Image: Supplied In a remarkable year for Spear Reit, the Western Cape property investment group expanded its portfolio significantly while reporting a solid increase in distribution per share (DIPS). With a rise of 3.06% to 81.27 cents for the 2025 financial year, expectations for the forthcoming years remain optimistic, as CEO Quintin Rossi anticipates further DIPS growth of between 4% and 6% for the 2026 financial year. Describing the past year as transformative, Rossi, in an interview on Thursday. highlighted the acquisition of 13 commercial properties from the Emira Property Fund as a key milestone. This expansion, coupled with a R130 million share issue for a fully let 30 000 square metre agriculture and wine logistics facility in Paarl announced this week, signifies a firm commitment to a growth strategy that is expected to bear fruit in the years ahead, he said. 'The R1.15 billion transaction positions Spear firmly on a growth trajectory,' said Rossi in an interview Thursday. The diversified portfolio encompasses industrial, medical, life science-focused retail, and commercial assets in the Cape Metropolitan area. Despite the challenges posed by South Africa's macroeconomic landscape, including fluctuating inflation rates and intermittently disruptive loadshedding, Spear's core portfolio thrived. Distributable income soared by 25.5% to R252m, while revenue climbed 12.10% to R681.70m—a testament to Spear's tenacity in an uncertain environment. 'Our focus on operational imperatives yielded tangible results,' Rossi asserted, noting a steady increase in leasing momentum and a 97% occupancy rate at the end of the reporting period. 'The Cape Metropole's office space has seen tenant demand surpassing supply, a clear indicator of a robust market.' With a rental collection rate steady at 98.59%, the board approved a final six-month payout ratio of 95%, ensuring sustained income distribution to shareholders amidst economic volatility. 'While we navigate challenges such as crime and high unemployment, we see promising signs of recovery within the South African-listed property sector,' Rossi explained, adding that the declining interest rate environment has contributed to the sector's recent successes. The Western Cape, said Rossi, had seen its property metrics diverge from national trends, aided by extensive infrastructure investments—R120 bn over 10 years—which are fostering economic growth and job creation within the province. This local focus has proven advantageous as Spear's industrial portfolio occupancy stands at 98.85%, driven by prime locations and diverse offerings that make it resilient in fluctuating markets. 'The industrial segment accounts for 63% of our total lettable area and continues to show sustainable cash flow as we observe an in-force escalation of 7.3%,' he said. Spear's retail assets also delivered above-expectation results, with a strong occupancy rate of 96.05%. Rossi said they were pursuing new retail opportunities, ensuring that Spear remains well-positioned for the future, focusing on convenience and destination retail spaces that cater to a wide income spectrum. Additionally, two medical retail properties added to the core portfolio were backed by long-term lease agreements with recognised entities like Intercare and Clicks Group. Rossi was particularly optimistic about the commercial portfolio, which is poised for rental growth due to constrained supply in high-quality office spaces across the Cape Metropolitan area. 'The occupancy rate has improved to 92.99% from 84.37% in the last financial year, reflecting the strong demand,' he remarked. As Spear Reit continues to navigate the complexities of the property market, its focus on the Western Cape and a diverse portfolio positions it competitively for sustained growth and resilience. Visit:
Daily Maverick
25-05-2025
- Business
- Daily Maverick
The Finance Ghost: The power of focus – story of two Reits and a wrong
Two property funds – Shaftesbury and Spear – have done well through having highly focused portfolios. In contrast, Pick n Pay is paying the price for losing focus. When corporates lose focus, they often lose money as well – or at the very least, lose value for shareholders. Diversification is great as a portfolio strategy, but it's often quite messy as a corporate strategy. The market's preference is for corporates to focus on what they are good at, with investors then having the option to diversify by choosing different corporates to invest in. When management teams start trying to act like fund managers by diversifying too much at corporate level, it often ends in tears. We have far too many examples of this on the JSE, usually involving offshore deals along the way! This week, there were two examples of property funds that have done well through having highly focused portfolios. Of course, they are both focused in lucrative areas – it certainly doesn't help to be focused in the wrong place! We begin with that duo, before looking at a retailer that is still dealing with the fallout of having lost its way in its core business. London's West End: cool for the summer Weather aside, London is an exciting and vibrant place. It attracts people from literally all over the world, with luxury properties (and associated shopping experiences) that have to be seen to be believed. London's West End is arguably the jewel in the crown, famous for its theatre and other attractions. This is where Shaftesbury has elected to focus its property fund and the outcome has been predictably strong. In an update given at the company AGM, the company notes that momentum in recent leases has been strongly positive. They are 8% ahead of the estimated rental value (ERV) in December 2024, a metric that you don't really see in South African real estate investment trusts (Reits). The new leases are also 9% ahead of previous passing rents, which is analogous to local funds talking about positive lease reversions. Whichever way you cut it, there's clearly plenty of demand from tenants for the space, further evidenced by a decrease in vacancies from 2.6% to 1.7%. My hope is that Shaftesbury continues with the focused strategy, particularly as it has sold a 25% stake in the Covent Garden estate to NBIM (the Norwegian sovereign wealth fund) for £570-million. This gives the company quite the war chest, with the loan-to-value ratio expected to be only 17% once this corporate activity is taken into account. Investors will want to see this capital deployed into more high-quality assets in the West End, otherwise Shaftesbury will start to deviate from what makes it special. Spear Reit stays sharp in the Western Cape Spear Reit is trading on a dividend yield of roughly 8.3%. This makes it a hot property, literally. The market sees this as a quality portfolio in the best region in South Africa, with Spear having passed the test of showing the market that it is capable of recycling capital (i.e. selling properties and reinvesting in new opportunities rather than always tapping the market for fresh equity capital). The other test that it passed in the year ended February 2025 is the need for positive reversions. This is probably the best way to gauge the supply and demand forces in a property portfolio. With positive reversions of nearly 4.2% in that financial year, Spear has entered into new leases at higher rentals than the outgoing leases. They are also enjoying in-force escalations on those leases that are above inflation, coming in at roughly 7.3%. It's worth noting that property inflation has been somewhat higher than CPI, fuelled by the likes of energy and security costs, as well as municipal rates, so those escalations aren't as lucrative as they sound. Spear also isn't sitting still, with a deal announced to acquire the Berg River Business Park in Paarl for around R182-million, excluding transaction costs. It is acquiring the asset on a purchase yield of 9.35%, and the deal comes with additional goodies such as the seller giving a guarantee for the rental on some occupied units for 18 months. Onwards and upwards, then. Pick n Pay: the price of losing focus in your core business Pick n Pay is in turnaround mode and that will be the reality for a long time, all because it has lost its way in its core retail business over the course of many years. Like a balloon in the clutches of a hyperactive toddler, there's only so much pressure that a business can take before the thing pops. Pick n Pay is now dealing with the post-pop, or at least the first post-pop. The latest results show that it certainly isn't out of the woods yet, so investors should be cautious in assuming that the most recent capital injection was the last one that will be required. For the 53 weeks to 2 March 2025, the core Pick n Pay segment made a loss after lease costs. It sounds ridiculous to have to specify that we are talking about profit (or loss) net of leases, but such is the nature of the current accounting standards. The loss is admittedly less severe than it used to be (the headline loss per share has reduced by between 55% and 75%), but it is still burning through the balance sheet. Speaking of the balance sheet, part of the reason for the reduced losses is the recent injection of equity capital from shareholders that helped Pick n Pay get rid of a chunk of debt. The income statement may show the benefit of this in terms of lower finance costs, but the long-term truth of it is that equity capital is actually more 'expensive' than debt capital as equity holders demand a higher rate of return than debt providers. In simple terms, if Pick n Pay can't stem the bleeding and then start to achieve a reasonable return on equity, the prospects for successful future capital raising will diminish quickly. The share price may be up 40% in the past year thanks to Sean Summers and his team having won the belief of many in the market, but the proof will be in the pudding aisle at your local Pick n Pay. The in-store experience needs to improve to the point where it is making profits again. All of this would be much easier in a competitive vacuum, of course. Alas, grocery retail is an absolute bloodbath of competition, with Shoprite as the most fearsome shark in the water and Pick n Pay as the struggling swimmer with an open wound. DM
Yahoo
22-05-2025
- Automotive
- Yahoo
Senate cancels California's clean-truck waivers
WASHINGTON — The U.S. Senate on Thursday voted to repeal a waiver granted to California by the Biden administration that the trucking industry considered costly electric vehicle mandates by requiring much of the industry to achieve zero-carbon emissions by 2035. The Senate also voted to repeal a waiver that tightens nitrogen oxide (NOx) emission standards for heavy-duty trucks. The nullifications of California's Advanced Clean Truck (ACT) and Low NOx Omnibus rules, accomplished through two Congressional Review Act resolutions, have already been adopted by the House of Representatives. They head to the White House where they are expected to be signed by President Donald Trump. 'The trucking industry is no longer shackled by these unattainable regulatory standards set by unelected officials in California,' Jim Mullen, executive director of the Clean Freight Coalition, which is supported by major trucking fleets, said in an email to FreightWaves. 'To be clear: the trucking industry will continue to pursue an 'all of the above' strategy to reduce commercial vehicle emissions, while at the same time protecting the supply chain and the economy.' The American Trucking Associations called the Senate's repeal of the waivers a 'monumental victory' for the trucking industry. 'We don't need government mandates to tell us how to reduce our environmental impact — we've been doing it for forty years with a record to show, all while moving an ever-increasing percentage of the goods that Americans expect and depend on every day,' said ATA President and CEO Chris Spear in a statement on Thursday. In a letter sent to Congress in April, Spear argued that California's ACT regulation, if allowed to move forward, would have required truck manufacturers to increase zero-emission vehicle sales to 40% of the Class 7-8 fleet by the 2035 model year and would have 'put enormous inflationary pressure on the economy.' It has already been adopted by other states, he noted, 'causing equipment costs to skyrocket for trucking companies, combined with a severe shortage of new and available clean-diesel equipment.' Spear also noted that the resolutions passed by Congress 'will not only restore EPA's role as the primary authority empowered to establish achievable, nationwide emissions standards, but will also block California from issuing similar regulations in the future.' Calstart, a nonprofit organization that works with the transportation industry to cut air pollution, called the votes a 'massive handout' to the trucking lobby. 'This move concedes the industries of the future to global competitors, will increase air pollution, accelerate global warming and result in significant job loss,' said Calstart President John Boesel in a press statement. 'It is a brazen, yet futile, attempt to bring the clean transportation industry to a sudden halt. Calstart will continue to partner with the states working to fill this gaping void left by today's federal action.' Clash on legal status of California transportation waivers highlighted at TCA EPA announces rollback of Biden-Harris emissions rules Speculation abounds on California trucking regulation with no ACF Click for more FreightWaves articles by John Gallagher. The post Senate cancels California's clean-truck waivers appeared first on FreightWaves.
Yahoo
22-05-2025
- Climate
- Yahoo
May Nor'easter in Massachusetts: Latest hour-by-hour timeline, storm impacts
A rare, late-spring nor'easter is expected to slam Massachusetts on Thursday with torrential rain, powerful wind gusts, and threaten coastal communities with flooding ahead of Memorial Day weekend. The Boston 25 Weather Team issued a WEATHER ALERT due to the storm's expected impacts. 'We're going to see peak wind and rain this afternoon and evening,' Boston 25 Meteorologist Shiri Spear said her latest forecast. 'Absolute downpours out there.' LATEST STORM TIMELINE Steady rain will be in place for the morning commute, with rainfall turning heavier after about 8 a.m. Downpours will soak the region from midday through the afternoon and evening. Spear warned that travel will be slow, with low visibility and ponding water on area roads. Showers could linger through Friday and there will be a chance for a spot shower on Saturday, but conditions will track mostly dry by then. Sunday will be dry, but cloudy. THREATS WE'RE WATCHING 1-3 inches of rain Wind gusts 30 to 50 mph Areas of coastal flooding EXPECTED RAINFALL TOTALS Rainfall totals of up to 2.5 inches is likely across most of Massachusetts. Some communities in eastern Massachusetts could see up to 3 or 4 inches of rain by Thursday night. Northern new England, including New Hampshire, Maine, and Vermont will see about an inch of rain. STRONG WIND Wind gusts will ramp up as well on Thursday, also peaking in the afternoon and evening. Gusts of 40-50 mph will develop along the coast, highest on Cape Cod, Nantucket, and Martha's Vineyard Inland gusts will range from 30-40 mph. The National Weather Service issued a wind advisory for Essex, Suffolk, Norfolk, Plymouth, Barnstable, Dukes, and Nantucket counties. There is a risk of wind damage and power outages, as with any powerful storm. 'The fact that the trees are fully leaved and the soil is saturated will enhance the risk for tree damage and some power outages,' Spear wrote in her latest weather blog. FLOODING THREAT Pockets of splash over and minor coastal flooding will develop late Thursday afternoon and evening along the coast ahead of the 8 p.m. high tide. The National Weather Service issued a coastal flood advisory for Bristol, Plymouth, Essex, Suffolk, Norfolk, Plymouth, Barnstable, Dukes, and Nantucket counties. Flooding of lots, parks, and roads with isolated closures are expected. 'If travel is required, allow extra time as some roads may be closed. Do not drive around barricades or through water of unknown depth. Take the necessary actions to protect flood-prone property,' the NWS warned. EARLY SPRING FEEL Highs on Thursday will be in the 40s and low 50s. Temps will climb into the lower 60s in some areas this weekend. Memorial Day is shaping up to be partly cloudy with temperatures climbing back near 70 degrees. STAY UPDATED For more on the forecast, visit the Boston 25 Weather page. Download the FREE Boston 25 News app for breaking news alerts. Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW
Yahoo
21-05-2025
- Climate
- Yahoo
Spring nor'easter coming to Mass.: Latest timeline for arrival, impacts
A spring nor'easter will sweep across New England on Thursday ahead of Memorial Day weekend, bringing torrential rain, strong wind gusts, and possible flooding to Massachusetts. The Boston 25 Weather team issued a WEATHER ALERT for Thursday due to the storm's expected impacts. LATEST STORM TIMELINE Showers will develop Wednesday night ahead of the more organized system. Steady rain will fall during the Thursday morning commute, but downpours will peak midday through the afternoon hours. 'If you're a morning commuter, 5 a.m. is not a bad time to be on the roads. We will have steady rain out there, but it won't be torrential yet,' Boston 25 Meteorologist Shiri Spear said in her latest forecast. 'That develops during the morning, so by lunchtime we're in the thick of it. The afternoon is going to feature scattered downpours.' Patchy rain will linger into Friday morning. 'As we travel through the overnight hours into Friday, lot of that heavy, steady rain is going to lift into northern New England,' Spear said. 'We're just left with some patchy tends to dry out Friday into Saturday.' THREATS WE'RE WATCHING 1-3 inches of rain Wind gusts up to 50 mph Areas of coastal flooding EXPECTED RAINFALL TOTALS Rainfall totals are expected to range from 1 to 3 inches. The heaviest rain is likely across eastern Massachusetts, including Boston. Central and western Massachusetts is in for about 2 inches of rain. Northern new England, including New Hampshire, Maine, and Vermont will see about an inch of rain. STRONG WIND Wind gusts will ramp up as well on Thursday, also peaking in the afternoon. Gusts up to 50 mph are possible along the coast and Cape Cod. Gusts of 30-45 mph are expected in other parts of the region. There is a risk of wind damage and power outages, as with any powerful storm. FLOODING THREAT Pockets of splash over and minor coastal flooding will develop late Thursday afternoon and evening along the coast ahead of the 8 p.m. high tide. Waves of 5 to 10 feet in height are expected, along with a 2-foot storm surge. Beach erosion is only expected to be minor. EARLY SPRING FEEL Highs on Thursday will be in the 40s and low 50s. 'It's going to feel like late March, early April,' Spear said. Temps will climb into the lower 60s in some areas this weekend. 'It's really running almost 10 degrees below average this weekend,' Spear noted. Memorial Day is shaping up to be partly cloudy with temperatures climbing back near 70 degrees. STAY UPDATED For more on the forecast, visit the Boston 25 Weather page. Download the FREE Boston 25 News app for breaking news alerts. Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW
