Anton Loubser, CEO of Afine Investments
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Afine Investments, a specialised REIT holding a portfolio of properties mainly in fuel stations in South Africa, increased headline earnings per share by 13.39% to 47,76 cents in the year to February 28 after navigating a complex operating environment.
The company that owns petrol stations in four of South Africa's nine provinces, worth about R449.8 million in total, increased its final dividend by 34.5% to 30 cents. This brought the total payout for the year to 52,50 cents, 22.66% higher than the year before.
Distributable earnings were up 39.9% to R34.64m. The company says on its website the majority of its petrol stations operate in the top 10% of fuel sales in South Africa.
Chairman Michael Watter and CEO Anton Loubser said the past financial year has been marked by a complex operating environment, shaped by persistent inflationary pressures, elevated albeit declining interest rates, evolving consumer behaviour, and a volatile geopolitical landscape.
Despite these challenges, the company demonstrated resilience, underpinned by the defensive characteristics of the petrol station portfolio and the essential nature of the services their tenants provide.
“Our assets - strategically located service stations with integrated convenience retail offerings -continue to deliver stable, predictable cash flows supported by long-term leases, with established fuel majors,” said Watter and Loubser.
Revenue increased to R50.7m from R48,1m, driven by contractual rental escalations and ancillary income. Net asset value per share increased to R4.70 (2025: R4.61), reflecting prudent asset management and steady valuation gains.
Finance costs reduced marginally due to the declining rate cycle, whilst a conservative loan-to-value ratio of 24.2% (24.8%) was maintained, well within the company’s target range.
During the year, initiatives aimed at reducing environmental impact, including energy efficiency improvements and exploring solar installations across select sites, were advanced.
“Looking ahead, the geopolitical and macroeconomic environment is expected to remain uncertain in the near term. This is especially true of the current situation in the Middle East and Gulf states that continues to drive up the cost of oil,” said Watter and Loubser.
They said however that the structural fundamentals of the fuel retail sector, combined with a defensive lease profile, position the group well to continue delivering stable income returns for our shareholders.
The company’s relatively infrequently traded share price was static at R4.40 on the JSE Wednesday morning, up 13.4% from R3.88 a year ago.
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