MAS reports 6.6% increase in net rental income amidst challenging market conditions

MAS, the JSE-listed owner of retail and commercial properties in Central and Eastern Europe (CEE), increased net rental income by 6.6% on a like-for-like basis, driven by a good operational performance and strong rental and service charge collections.

The company generated a total shareholders’ return of 12% for the year to June 30, the results showed Friday. Distributable earnings came to 9.53 eurocents a share, 27.7% higher than in 2025. Of this, 4.44 eurocents a share related to the second half, within the previous guidance range of 4.28 to 4.70 eurocents a share for the six months to June 30, 2025.

The company said Friday there was a significant contribution from the Development Joint Venture (DJV) in the year to June 30, which is the property development joint venture between MAS and its major shareholder Prime Kapital Investments.

The DJV’s commercial assets delivered outstanding results, boosted by the opening of the second super-regional mall in Romania, Mall Moldova, in April 2025. It residential segment losses significantly reduced, enhancing overall profitability.

Irina Grigore, MAS CEO, said the strong performance underscored the resilience and quality of the directly owned portfolio in CEE.

“We delivered solid results in a challenging environment, supported by robust trading dynamics and disciplined capital and debt management strategy implementation,” she said in a statement.

Footfall and trading remained strong across all assets, with a healthy occupancy ratio of 98.8%. “This success is a testament to the skills and dedication of our exceptional management team,” she said.

“Our focus remains on driving sustainable long-term value through strategic capital allocation and operational excellence. We remain committed to resuming dividend payments at a sustainable payment ratio,” she said.

MAS has been through a turbulent few months, with two bids made to acquire it, and minority shareholders expressing their unhappiness about corporate governance at the company.

To address concerns, Grigore said the company remained committed to the highest standards of business integrity, ethical values, and corporate governance, and the company would continue to act in the best interests of MAS and all its shareholders.

The company said it remained well positioned to provide shareholders with “best-in-class total long-term returns”, due to the long-term high growth in consumption in CEE, and leveraging its asset prospects and asset management capabilities to generate robust like-for-like net rental income (NRI) growth from retail operations, as well as its downside-protected exposure to commercial and residential developments via DJV.

Tangible net asset value on June 30, 2025, was €1.86 per share, a figure that had risen by 12% year-on-year. The share price fell 2.84% to R21.21 (€1.02) on the JSE Friday morning, but the price is 21.1% higher than it was a year ago.

The positive variances were offset somewhat by initiatives to maximise long-term returns to shareholders, including gains on MAS bonds repurchased, and increases in interest expenditure due to additional debt contracted in preparation for repayment of funding commitments, including the maturity of the bond in May 2026.

Additionally, the Western European disposals were completed during the previous financial year, leading to a decrease in profits from discontinued operations.

On June 30, MAS had €205.1m in cash, money market instruments, and undrawn facilities. The company had drawn down €90.5m of additional secured debt in the year to June 30, 2025. An additional €45m of debt was being finalised, which was expected to be drawn down by September 30. This would refinance a €22.9m secured debt facility maturing in December 2025.

On January 31, 2025, MAS and DJV disposed of their respective strip mall assets in Romania, collecting a combined €52.3m.

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