Newpark REIT reports dividend cut, revenue dip amidst rental reversions

Newpark REIT announced its unaudited interim results for the six months ended 31 August 2025, reporting Funds from Operations per Share (FFOPS) of 26.80 cents, a 24.5% decrease from the previous year. Revenue for the period declined by 7.3% to R63.8 million, while operating profit before fair value adjustments fell 3.2% to R44.5 million. The company declared an interim dividend of 26.00 cents per share, a 13.3% reduction from the 30.00 cents per share paid in the corresponding period of 2024.

The decrease in revenue and operating profit is primarily attributed to the reversion of JSE rental to market-related levels effective from 1 April 2025. Despite these challenges, total comprehensive profit for the period increased to R21.8 million, up from R8.3 million in H1 FY2025, resulting in earnings per share of 21.84 cents.

Newpark also announced the sale of its Crown Mines property for R99.4 million, with proceeds to be used for debt reduction. The company's loan-to-value ratio increased slightly to 44.5%, and the weighted average cost of funding decreased to 8.884%. The forecast FFOPS for the year ending 28 February 2026 have been revised upwards to between 41.50 and 48.50 cents per share.