Vukile Property Fund has reported higher annual earnings as its South African portfolio benefited from top-line growth and further cost reductions and as Castellana’s growth momentum continues.The real estate investment trust on Wednesday reported a 32.8% rise in gross property revenue to R5.8bn for the year to end-March, while attributable profit was up 78.9% at R5.7bn.HEPS rose to 179.54c from 158.59c before, and a cash dividend of 83.81c per share was declared, taking the total dividend to 143.97c, up 9.3% from the previous year.The group said the increase in profit was mainly driven by a full-year contribution from the Castellana assets, acquired in the second half of 2025 for about R9.7bn, further supported by a 12.3% and 6.6% increase in property valuations in South Africa and Iberia, respectively.As part of its strategic capital allocation and asset rotation, Vukile disposed of nine retail parks in Spain post year-end, and it is disposing of R630m of non-core assets in South Africa.It acquired the Berceo Shopping Centre in La Rioja, Spain, and post year-end it has acquired Islazul Shopping Centre in Madrid and a 50% interest in Splau Shopping Centre in Barcelona.In South Africa, the group acquired a 50% interest in Chatsworth Centre in KwaZulu-Natal and 100% of Botshabelo Mall in Free State.It also acquired a 35% interest in Pradera Group, a Pan-European specialist retail property investment fund and asset manager. It has entered the Italian market with the acquisition of three shopping centres, which will serve as the platform for future expansion.The group said building on a year of strong organic growth and strategic corporate activity, it has significantly strengthened its position in all of the markets in which it operates. “Asset rotation across the group has reshaped our portfolio to rank amongst the strongest in Iberia, increased our exposure to the performing township and rural segments in South Africa, while the acquisition of three shopping centres in Italy (post year-end) establishes a platform to build a business in a new market with very positive property fundamentals,” it said.“Complementing this, our strategic investment in Pradera enhances our access to pan-European retail expertise and supports further expansion into European markets, specifically Italy.”Vukile said it is well positioned to build on this momentum to achieve inflation-beating growth in the year ahead.In May the group successfully completed a R2.8bn capital raise, which was significantly oversubscribed, reflecting strong investor confidence in its strategy.It is forecasting growth in funds from operations (FFO) per share of between 8% and 10% for the forthcoming financial year. FFO for the 2026 financial year was 173.6c per share.Vukile intends to marginally increase its dividend payout ratio from 83% to 85%, supporting projected dividend per share growth of between 10% and 12%, it said.Business Day