Heartwood Properties, a commercial property development and investment company listed on the Cape Town Stock Exchange (CTSE), has reported a solid operational and financial performance for the year ended 28th February 2025.

“We are very pleased with our results in a fairly tough market,” says John Whall, CEO of Heartwood Properties. “What is most important to note is that we are set up for a lot of growth. We have refinanced our portfolio on much more favourable terms and the benefits are really going to flow through the business in our current financial year. We are also in the final stages of securing substantial equity funding which will position us to move decisively on a strong pipeline of developments.”

With a vacancy rate of less than 1%, the Group’s portfolio recorded a weighted average lease expiry (WALE) of 5.14 years with a weighted average lease escalation of 6.7%. The Group’s gross portfolio value reflected 6.4% growth to R401 million.

As a key strategic move during FY2025, the Company secured a major parcel of serviced and zoned industrial land at The Bridge, a mixed-use development outside of Stellenbosch, for a major warehouse development – the largest land deal secured by the Company to date.

With a strong pipeline of developments ahead, Heartwood is aiming to commence at least three warehouse developments in the near term: two projects of approximately R100 million each and a third of around R60 million.

Heartwood’s net asset value (NAV) recorded growth of 6.4% to R150 million with its NAV per share reflecting R1.09 (growth of 6.9%), Its loan-to-value (LTV) ratio reduced to 52% from 54% in FY2024.