Path to a ZAR10bn asset base

Key message: as part of its strategic plans to grow market cap and improve liquidity towards SAPY/ALPI index inclusion, Spear has ambitions to grow its investment property portfolio from ZAR4.5bn at present to >ZAR10bn within the next five years. We explore its potential inorganic growth pipeline in this note.  

FY22 results preview: Spear will publish its FY22 results on 26 May 2022. We expect DIPS of ZAR78.3c (+8.3% y/y) with a full year dividend of ZAR66.5c per share (+13.3%) based on an 85% payout ratio. Management recently revised its FY22 guidance upwards to DIPS of 77.8c – 78.5c, with a dividend range of 67.5c – 69.3c based on an 85-90% payout range, so it looks likely that the distribution will be slightly ahead of our expectations depending on the final payout ratio.

Download report