Newpark REIT has posted its interim results for the six months ended 31st August 2025, reporting a 7.3% decrease in revenue to R63.8 million compared to H1 FY2025.
The Company’s portfolio comprises four assets – two in Sandton, namely the JSE building (it’s biggest property by GLA of 18 533m²) and an adjoining mixed-use property, 24 Central (16 526m²), the third asset in Linbro Park (13 713m²), and the fourth in Crown Mines (11 277m²) with the portfolio’s current weighted average lease expiry 4.9 years.
Newpark’s operating profit before fair value adjustments was R44.5 million, down 3.2% with the decrease in its operating profit and revenue primarily due to the reversion in the JSE building rental in accordance with the terms of their new lease.
After allowing for fair value adjustments and net cost of finance, the REIT’s total comprehensive profit for the period was R21.8 million (H1 FY2025: R8.3 million), representing a profit per share of 21.84 cents per share (H1 FY2025: 8.32 cents per share).
In early September 2025, Newpark informed shareholders of the disposal of its Crown Mines asset for a net consideration of R99.4 million with proceeds from the sale to be utilised to reduce borrowings, with the impact of reduced rental income being partially offset by lower funding costs.
Newpark’s loan-to-value (LTV) ratio increased slightly to 44.5% (FY2025: 43.1%) with its weighted average cost of funding, following interest rate cuts and post the implementation of additional hedges, is 8,884% (H1 FY2025l 9.3%). Its weighted average maturity of its debt facilities is 2.5 years with the percentage of hedges in place against its drawn debt exposure 53.5% as at 31st August 2025.
The REIT’s Board declared a dividend of 26,00 cents per share (H1 FY2025: 30,00 cents per share with its net asset value (NAV) per share (after considering its interim dividend) R5.62 (FY2025: R5.64).
