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JSE-listed Accelerate Property Fund made further inroads into repairing its balance sheet in the year to end-March, cutting debt by almost R800m through asset sales while improving leasing activity and reducing vacancies at Fourways Mall.Vacancies at Fourways Mall, its largest asset, fell below 10%, supported by stronger leasing activity, improved trading density and monthly footfall of more than one million visitors, it said in its results for the year to end-March. The group continued to strengthen its balance sheet during the year, cutting gross debt by R777.3m to R3bn and reducing its SA Reit loan-to-value (LTV) ratio to 43.7% from 48.3%.CEO Abri Schneider said the results reflected progress in areas management could directly influence.“The 2026 financial year produced visible progress in the areas within our control. We reduced debt, lowered vacancies and strengthened the operating performance of Fourways Mall,” Schneider said.While the group has made meaningful progress in reducing debt, its turnaround has yet to translate into shareholder returns. The board again withheld a dividend, saying distributions would only resume once the loan-to-value ratio falls below 40%.Debt reduction was driven by the sale of four properties and a vacant stand for R788.5m, with the proceeds largely applied to interest-bearing borrowings. A further five properties transferred after year-end, generating R278.2m for debt reduction, while the disposal of BMW Fourways for R174m is expected to further strengthen the group’s balance sheet once the transaction is registered.Basic and diluted headline earnings were 19.43c.The group ended the year with 15 properties, with the value of its portfolio falling to R6.6bn.Revenue fell to R678.9m and rental income to R517.2m. Excluding the effect of property disposals and Fourways Mall headlease income recognised in the prior year, like-for-like rental income increased 1.4%.The group has secured leases covering 4,342m² at the Fourways View precinct, where tenants including Pantry, Tashas, Fournos, George’s Grill and Liquor Lane are expected to open from October.The broader portfolio also improved, with Cedar Square reducing vacancies to 1.4%.Schneider said the focus in the new financial year would shift to strengthening cash generation while completing the disposal programme and refinancing debt due in March 2027.“Our immediate task is to convert these gains into sustainable collections and net property income while completing the disposal programme and addressing the debt refinancing due in March 2027. Interest cover remains tight, and the focus for the new financial year is on further debt reduction and stronger cash generation at Fourways Mall,” he said.
